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HomeMy WebLinkAbout2018 Final Budget2018 Budget CITY OF PORT TOWNSEND, WASHINGTON 2018 CITY MANAGER BUDGET MESSAGE This budget message provides details regarding the City Manager’s 2018 Proposed Budget, a summary of the 2017 Supplemental Budget request, and links to the 2016 Audited Financial Statements. FINANCIAL PERFORMANCE HIGHLIGHTS 2016 AUDITED FINANCIAL STATEMENTS The City successfully completed two audits in 2017. Audits of the 2016 financial statements and a Single Audit related to federal grant funded projects were both completed in mid-August by the State Auditor. No findings or management letter comments were received. The 2016 financial results were positive, with a $254,000 increase in the general fund ending fund balance. Financial results for each of the funds met or exceeded the City Council’s financial policy targets except for the Contingency Fund. The Contingency Fund transferred $50,000 to the Community Services Fund for an emergency boiler repair at Mountain View in late 2016. The Community Services Fund plans to repay the Contingency Fund during 2017 (appropriation is included in the supplemental 2017 budget proposal), bringing this fund back into compliance with its reserve target. The 2016 audit reports can be located on the City’s website: https://weblink.cityofpt.us/weblink/Browse.aspx?&dfid=0dbid=0&StartID=42236&cr=01 And on the Washington State Auditor’s website: http://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1019516&isFinding=f alse&sp=false 2017 S&P RATING UPGRADE During the first quarter of 2017, the City sold Limited Tax General Obligation and Refunding Bonds to refinance its 2008 bonds and to generate additional proceeds for sidewalk improvements, repaving Water Street, rehabilitating the Carnegie Library and other capital purposes. The City applied to S&P Global Ratings (S&P) for a rating on these bonds. Based on the overall strength of the City’s local economy, city policies and practices, management and financial performance, S&P upgraded the City’s bond rating from A+ to AA-. This is an excellent rating and aided in keeping the interest rates low on the bond sale. City of Port Townsend 2018 Budget Page 1 of 172 2017 BUDGET OVERVIEW Throughout 2017, the City has continued to benefit from the improving economic climate through strong sales tax, business and occupational tax, licensing and permitting activity. Construction activity continues to be the largest contributor to these increases. Projects that began prior to 2017 and completed during 2017 included the Building 202 project at Fort Worden, Howard/Rainier Street extension and the City’s own water treatment plant and reservoir projects. Additional large construction projects in the City during 2017 included the maintenance building at Fort Worden and the start of construction of the new Salish Elementary School. However, delays in the start of 2017 projects have caused sales tax revenues for 2017 to come in slightly lower than the adopted budget amount. Development services revenues (largely permitting), business and occupational tax revenues, Real Estate Excise Tax (REET) and lodging tax revenues are estimated at or above 2017 adopted budget levels. 2017 permitting activity included $45,000 for the permit for Salish Elementary School and is projected to exceed budget. Business and occupational tax revenues are on budget for 2017. Real Estate Excise Tax (REET) revenues continue to reflect the strong City real estate market and are projected to exceed budget by just over 30%. Lodging Tax revenues reflect a more modest increase at $20,000, or 4.4% above budget. The 2017 adopted budget included modest service restorations and enhancements with staffing additions budgeted in Police Administration, Public Works Administration and Community Services - Pool/Parks. A full time Executive Assistant for the Police Chief was hired to handle administrative duties including assisting the chief with personnel matters, scheduling, budget management, invoice coding, expenditure tracking and administering travel arrangements and reimbursements. This position was filled in the first quarter of 2017. Public Works Administration added a permit technician to work at the Development Services counter. This full-time position supports public works development review and permit processing. This position was filled in early 2017. The City pool added 0.63 full time equivalents for part time swim instructors. Swim instructors lead classes that drive additional pool revenue. The revenue associated with these instructors covers the direct cost of the instructors’ salaries and benefits. Additionally, the City Council approved the transfer of the management of the Port Townsend Swim Team from a parent-led non-profit to a City recreation program. This program adds up to two-part time swim team coaches (0.60 full-time equivalents) to the pool staff. These positions are funded by revenues charged to swim team participants. The Parks department added part-time seasonal workers (0.84 full time equivalents) for 2017 to cover increased maintenance activity during April through September. Operating and capital expenditures continue to be closely monitored. The supplemental budget proposal includes requests for additional appropriations for items City of Port Townsend 2018 Budget Page 2 of 172 that could not be identified or quantified at the time the 2017 budget was prepared. The City Council approved several significant appropriations during the year. These include: Loan to Homeward Bound – The City’s General Fund provided a $250,000 loan to Homeward Bound to facilitate the acquisition, movement and placement of a four-plex from Victoria, British Columbia to Port Townsend to be used for affordable housing. The loan was established as short term financing to allow Homeward Bound time to acquire permanent financing for the project. The loan matures in December of 2017 but will likely need to be extended into 2018. City staff will be requesting an inter-fund loan from the Transmission Line Fund to the General Fund in November 2017. Howard Street sub area plan and staff support – In February 2017, the City Council approved the addition of the Howard Street/Sims Way Corridor Subarea plan to the 2017 Comprehensive Plan annual update process. In May 2017, the City Council authorized staff to retain AHBL to assist in engaging and capturing the community’s vision for this area and to transform that vision into the subarea plan. The 2017 cost for AHBL’s work and the temporary staff support hired to spearhead this project is included in the supplemental budget at $165,725. 2015 General Government Bonds - In February 2017, the City sold Limited Tax General Obligation and Refunding Bonds (Series 2017A Bank Qualified and Series 2017B Taxable). The bond sale generated bond proceeds of $3,200,000. The accounting treatment for bond proceeds and issuance costs requires the recognition of the receipt of these funds as a revenue and the transfer of the funds to the project fund as an expense. The 2017 supplemental budget includes the activity in the Debt Service Fund related to these additional accounting entries. Additional proposed supplemental budget general government appropriation items include: • Grant to Homeward Bound for start-up/administrative costs • Plan review and inspection services consulting – staff vacancy coverage • Overtime coverage provided by Jefferson County Sherriff’s Department • Propane cost increases at Mountain View and City Hall • Employee self-service software • Street improvements funded through a TIB grant • Hotel Vacancy study, Performing Arts study and tourism promotion funded by Lodging Tax revenues • General Government Debt Refinancing Costs and Project Fund Transfers to Capital Project Fund Proposed supplemental budget enterprise fund appropriation items include: • Transfer of System Development Fund reserves to the Water/Sewer Capital Fund to fund a portion of the City match for the new treatment facility and 5mg reservoir projects City of Port Townsend 2018 Budget Page 3 of 172 • Capital project costs for the new treatment facility and 5mg reservoir projects that were appropriated in 2016 but not spent until 2017 • Inter-fund loan from the Transmission Line Fund to the General Fund related to the original loan from the General Fund to Homeward Bound Proposed supplemental budget internal service fund appropriation items include: • Civil engineer hired to assist with capital project management • Additional project management costs for the close-out of the new treatment facility and 5mg reservoir projects • Recruiting costs and Public Works Director salary related to the pending retirement of the current Public Works Director 2017 sales tax revenue projections identified $163,600 of “one time” construction related tax revenue to be earmarked for two police vehicles. With 2017 retail sales tax activity currently projected at approximately $50,000 lower than budget, the purchase of the police vehicles has not been made in 2017. The City proposed 2017 Supplemental Budget Fund summary is listed below: City of Port Townsend 2018 Budget Page 4 of 172 20 1 6 20 1 7 20 1 7 20 1 7 20 1 7 20 1 7 20 1 7 2017 2017 En d i n g F u n d Ad o p t e d A m e n d e d A d o p t e d A m e n d e d A d o p t e d A m e n d e d Pr o p o s e d Su p p l e m e n t a l Projected Ending Fund Ba l a n c e R e v e n u e s R e v e n u e s E x p e n s e s E x p e n s e s Re v v s . E x p R e v v s . E x p Ap p r o p r i a t i o n Balance GE N E R A L F U N D 1, 4 2 1 , 3 9 1 8, 2 9 1 , 0 5 5 8, 5 8 9 , 9 4 2 8, 2 8 3 , 4 9 5 8, 5 6 0 , 8 6 4 7, 5 6 0 29 , 0 7 8 277,369 1,450,469 Dr u g E n f o r c . / C o n t i n g e n c y 12 0 , 8 3 6 50 0 50 , 5 0 0 - - 50 0 5 0,5 0 0 - 171,336 St r e e t 30 4 , 9 4 1 81 7 , 0 4 9 86 7 , 5 4 7 81 3 , 2 1 6 86 5 , 9 4 1 3,8 3 3 1,6 0 6 52,725 306,547 Lib r a r y 20 5 , 6 9 6 1,0 5 1 , 2 5 5 1,0 5 0 , 9 1 9 1,0 4 1 , 0 1 9 1,0 3 6 , 4 9 6 10 , 2 3 6 14 , 4 2 3 - 220,119 Re a l E s t a t e E x c i s e T a x 17 9 , 9 4 0 46 0 , 1 0 0 60 0 , 9 0 0 46 0 , 0 0 0 60 6 , 0 0 0 10 0 (5 , 1 0 0 ) 146,000 174,840 Lo d g i n g T a x 17 7 , 6 1 1 46 0 , 0 0 0 48 0 , 0 0 0 43 3 , 7 3 4 48 0 , 0 0 0 26 , 2 6 6 - 46,266 177,611 Fi r e / E M S 15 , 8 8 7 2,3 1 7 , 8 0 8 2,3 1 7 , 7 6 6 2,3 1 7 , 1 9 4 2,3 1 7 , 1 9 4 61 4 57 2 - 16,459 Aff o r d a b l e H o u s i n g 40 , 7 8 0 10 , 0 0 0 10 , 2 0 0 10 , 0 0 0 40 , 0 0 0 - (2 9 , 8 0 0 ) 30,000 10,980 Co m m u n i t y D e v e l o p m e n t B l o c k G r a n t 14 8 , 1 5 9 17 , 4 2 1 20 , 2 1 9 15 , 2 4 5 15 , 2 4 5 2,1 7 6 4,9 7 4 - 153,133 Co m m u n i t y S e r v i c e s 12 5 , 9 3 9 1,8 0 6 , 2 4 2 1,8 7 1 , 1 9 0 1,8 0 3 , 9 7 2 1,9 2 5 , 9 6 9 2,2 7 0 (5 4 , 7 7 9 ) 121,997 71,160 TO T A L S P E C I A L R E V F U N D S 1, 3 1 9 , 7 8 7 6, 9 4 0 , 3 7 5 7, 2 6 9 , 2 4 1 6, 8 9 4 , 3 8 0 7, 2 8 6 , 8 4 5 45 , 9 9 5 (1 7 , 6 0 4 ) 396,988 1,302,183 DE B T S E R V I C E F U N D 71 , 0 9 6 1, 5 9 2 , 0 0 3 5, 0 0 0 , 1 8 6 1, 5 8 5 , 5 6 5 4, 9 8 7 , 7 0 2 6, 4 3 8 12 , 4 8 4 3, 4 0 2 , 1 3 7 83,580 Ge n e r a l C a p i t a l 1,3 0 9 , 0 1 7 2,3 7 5 , 8 7 6 3,4 2 5 , 6 0 0 3,5 7 5 , 6 7 6 1,7 0 2 , 8 8 1 (1 , 1 9 9 , 8 0 0 ) 1,7 2 2 , 7 1 9 - 3,031,736 St r e e t C a p i t a l (1 1 6 , 7 2 2 ) 3,9 6 9 , 4 0 9 3,8 2 4 , 5 8 4 3,9 6 9 , 2 8 4 3,7 3 9 , 1 7 6 12 5 85 , 4 0 8 - (31,313) CA P I T A L P R O J E C T S F U N D S 1, 1 9 2 , 2 9 6 6, 3 4 5 , 2 8 5 7, 2 5 0 , 1 8 4 7, 5 4 4 , 9 6 0 5, 4 4 2 , 0 5 7 (1 , 1 9 9 , 6 7 5 ) 1, 8 0 8 , 1 2 7 - 3,000,423 Sy s t e m D e v e l o p m e n t 1,9 9 7 , 0 6 6 30 4 , 0 0 0 39 1 , 7 6 0 - 68 7 , 0 0 0 30 4 , 0 0 0 (2 9 5 , 2 4 0 ) 687,000 1,701,826 Wa t e r / S e w e r O p e r a t i o n s 3,0 1 8 , 0 7 0 5,7 0 8 , 2 2 3 5,7 1 5 , 8 1 6 5,6 9 1 , 0 9 8 5,7 5 3 , 3 5 3 17 , 1 2 5 (3 7 , 5 3 7 ) 62,256 2,980,533 Wa t e r / S e w e r C a p i t a l 1,9 9 3 , 8 2 2 6,6 8 2 , 0 1 3 5,4 2 3 , 4 3 9 4,5 1 5 , 0 4 9 7,3 0 8 , 7 5 0 2,1 6 6 , 9 6 4 (1 , 8 8 5 , 3 1 1 ) 2,793,701 108,511 St o r m O p e r a t i o n s 76 , 2 4 5 56 0 , 9 0 0 56 0 , 9 0 0 48 7 , 0 9 8 47 8 , 0 0 5 73 , 8 0 2 82 , 8 9 5 - 159,140 St o r m C a p i t a l 12 6 , 6 2 7 1,3 4 4 , 0 5 0 60 0 , 6 0 0 1,3 3 0 , 0 0 0 64 0 , 0 0 0 14 , 0 5 0 (3 9 , 4 0 0 ) - 87,227 EN T E R P R I S E F U N D S 7, 2 1 1 , 8 3 0 14 , 5 9 9 , 1 8 6 12 , 6 9 2 , 5 1 5 12 , 0 2 3 , 2 4 5 14 , 8 6 7 , 1 0 8 2, 5 7 5 , 9 4 1 (2 , 1 7 4 , 5 9 3 ) 3, 5 4 2 , 9 5 6 5,037,237 Pu b l i c W o r k s A d m i n 40 , 2 9 5 50 5 , 9 7 9 49 0 , 4 1 9 50 5 , 8 8 0 53 0 , 1 1 9 99 (3 9 , 7 0 0 ) 24,239 595 Eq u i p m e n t R e n t a l & R e p l a c e m e n t 79 0 , 9 2 1 88 7 , 5 1 6 87 7 , 8 6 3 92 0 , 5 3 3 98 2 , 6 0 0 (3 3 , 0 1 7 ) (1 0 4 , 7 3 7 ) 62,067 686,185 En g i n e e r i n g S e r v i c e s 17 5 , 3 8 2 94 4 , 2 5 0 1,0 3 9 , 6 3 0 88 7 , 9 2 1 1,0 0 3 , 0 8 8 56 , 3 2 9 36 , 5 4 2 115,167 211,924 Un e m p l o y m e n t S e l f - I n s u r a n c e * * 24 , 7 3 2 3,0 5 0 30 , 8 2 5 3,0 0 0 30 , 6 4 0 50 18 5 27,640 24,917 IN T E R N A L S E R V I C E F U N D S 1, 0 3 1 , 3 3 0 2, 3 4 0 , 7 9 5 2, 4 3 8 , 7 3 7 2, 3 1 7 , 3 3 4 2, 5 4 6 , 4 4 7 23 , 4 6 1 (1 0 7 , 7 1 0 ) 229,113 923,620 Fi r e m e n ' s P e n s i o n 22 6 , 2 9 7 35 , 8 8 5 35 , 8 8 5 34 , 0 0 6 31 , 4 8 7 1,8 7 9 4,3 9 8 - 230,695 Ag e n c y / R e f u n d a b l e D e p o s i t s 65 , 5 4 2 17 0 - - - 17 0 - - 65,542 Me m o r i a l F u n d 2,5 4 9 - - - - - - - 2,549 Go l f C o u r s e F u n d 37 , 2 9 7 12 , 0 0 0 12 , 0 0 0 18 , 6 9 8 9,6 9 8 (6 , 6 9 8 ) 2,3 0 2 - 39,599 FI D U C I A R Y F U N D S 33 1 , 6 8 5 48 , 0 5 5 47 , 8 8 5 52 , 7 0 4 41 , 1 8 5 (4 , 6 4 9 ) 6, 7 0 0 - 338,385 GR A N D T O T A L 12 , 5 7 9 , 4 1 4 40 , 1 5 6 , 7 5 4 43 , 2 8 8 , 6 9 0 38 , 7 0 1 , 6 8 3 43 , 7 3 2 , 2 0 8 1, 4 5 5 , 0 7 1 (4 4 3 , 5 1 8 ) 7, 8 4 8 , 5 6 3 12,135,896 Ci t y o f P o r t T o w n s e n d P r o j e c t e d 2 0 1 7 F u n d S u m m a r y - S u p p l e m e n t a l B u d g e t Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 5 of 172 2018 BUDGET OVERVIEW The City’s 2018 budget reflects the continuation of positive revenue improvements that were experienced in 2016 and 2017. We continue to monitor the revenue improvements to discern improved economic trends as compared to “one-time” revenues related to construction activity. Construction activity in 2017 continues in 2018 with planned projects at Fort Worden and the start of construction of the Salish Elementary School. Some commercial and residential activity increases are also occurring. This construction related activity has positive impacts on retail sales tax revenue, business and occupational taxes, permitting revenue and special purpose sales related taxes. We expect the 2016 and 2017 revenue levels to continue through 2018. Along with revenue improvements, City expenditures also continue to grow. The City’s largest operating expense is salaries and benefits, which continue to have year over year growth in wages, medical and pension expenditures. Key labor and non-labor expenditure assumptions are highlighted in the remainder of this document. As directed by Council and consistent with the City’s strategic plan, the City Manager is working on the development of long-term funding strategies to address deferred needs in streets maintenance and repairs, parks and recreation services and other infrastructure improvements. Funding for these services and facilities require many strategies. The budget is adopted at the fund level. The chart below (which represents Exhibit A to the budget ordinance) provides an overview of the revenues, expenditures and projected ending fund balances: City of Port Townsend 2018 Budget Page 6 of 172 ` 2017 2018 2018 2018 2018 Estimated Proposed Proposed Proposed Proposed Balance Revenues Expenses Rev vs. Exp Balance GENERAL FUND 1,450,469 8,638,366 8,609,857 28,509 1,478,978 Drug Enforc. / Contingency 171,336 500 - 500 171,836 Street 306,547 837,942 819,082 18,860 325,407 Library 220,119 1,077,601 1,093,379 (15,778) 204,341 Real Estate Excise Tax 174,840 510,100 545,000 (34,900) 139,940 Lodging Tax 177,611 480,000 479,838 162 177,773 Fire / EMS 16,459 2,385,876 2,385,276 600 17,059 Affordable Housing 10,980 10,000 10,000 - 10,980 Community Development Block Grant 153,133 13,623 15,000 (1,377) 151,756 Community Services 71,160 2,013,448 2,012,560 888 72,048 TOTAL SPECIAL REV FUNDS 1,302,183 7,329,090 7,360,135 (31,045) 1,271,138 DEBT SERVICE FUND 83,580 1,675,155 1,645,656 29,499 113,079 General Capital 3,031,736 1,740,341 4,698,154 (2,957,813) 73,923 Street Capital (31,313) 3,062,602 3,017,489 45,113 13,800 CAPITAL PROJECTS FUNDS 3,000,423 4,802,943 7,715,643 (2,912,700) 87,723 System Development 1,701,826 315,290 1,080,000 (764,710) 937,116 Water / Sewer Operations 2,980,533 6,216,957 7,861,874 (1,644,917) 1,335,616 Water / Sewer Capital 108,511 8,204,054 6,247,915 1,956,139 2,064,650 Storm Operations 159,140 738,018 765,137 (27,119) 132,021 Storm Capital 87,227 1,070,600 1,000,000 70,600 157,827 ENTERPRISE FUNDS 5,037,237 16,544,919 16,954,927 (410,008) 4,627,229 Public Works Admin 595 584,573 584,272 301 896 Equipment Rental & Replacement 686,185 1,370,391 1,465,655 (95,264) 590,921 Engineering Services 211,924 1,009,500 1,042,564 (33,064) 178,860 Unemployment Self-Insurance 24,917 19,620 19,500 120 25,037 INTERNAL SERVICE FUNDS 923,620 2,984,084 3,111,991 (127,907) 795,713 Firemen's Pension 230,695 34,735 27,140 7,595 238,290 Agency / Refundable Deposits 65,542 - - - 65,542 Memorial Fund 2,549 - - - 2,549 Golf Course Fund 39,599 12,000 21,419 (9,419) 30,180 FIDUCIARY FUNDS 338,385 46,735 48,559 (1,824) 336,561 GRAND TOTAL 12,135,896 42,021,292 45,446,768 (3,425,476) 8,710,420 City of Port Townsend City Manager Proposed 2018 Fund Summary City of Port Townsend 2018 Budget Page 7 of 172 BUDGET ASSUMPTIONS KEY REVENUE ASSUMPTIONS The City’s Property Tax Levy for 2017 is forecast to increase by the statutory 1% plus an adjustment for the value of new construction and refunds forecast at approximately 2.5% for a TOTAL property tax levy increase of 3.5% for the General Levy. The EMS Levy of $0.50 generates an additional 4.9% of revenue. An excess property tax assessment of approximately $150,000 related to the Mountain View Commons voted tax assessment will be levied to fund 50% of the annual debt service for this voted bond. Below is a chart showing the distribution of property taxes: Retail Sales Taxes are projected at 4.9% higher than 2017 levels. Inflationary increases of approximately 3.0% are included in the projection. Additionally, the State Marketplace Act is anticipated to result in an increase in sales tax revenue primarily related to tax on internet sales. The state estimated this revenue for the City of Port Townsend at approximately $45,000. Below is a chart showing the trend of retail sales taxes from 2014 to present: General & Police Svs, $850,146 Fireman's Pension, $34,235 Debt Service, $252,000 Community Svs, $412,000 Affordable Housing, $10,000 Fire / EMS, $2,385,276 Library, $1,076,951 2018 Property Tax Allocation -$5,020,608 City of Port Townsend 2018 Budget Page 8 of 172 Utility Tax revenues in the proposed 2018 budget are based on a 22% public utility tax for all City water, sewer, storm water and garbage services. This tax is slated to revert to 20% at the end of 2018. The additional 2% was adopted as part of the 2016 budget proposal and is being used to fund two Community Services maintenance workers to serve Parks and Mountain View facility until a long-term funding strategy for Parks and Recreation is identified. Private utility tax rates are 6% of the private utility revenue. Telephone and electric private utility taxes are estimated to increase based on inflationary adjustments only. State Shared Revenues are based on distributions that are shared via state revenue assessments. The City receives distributions for liquor profits and tax, criminal justice tax distributions, gas and multi-modal taxes. Some of these distributions are population based with the City’s population for 2017 listed by the Office of Financial Management as 9,500 (an increase from 2016’s population of 9,485). Lodging Taxes are projected at $480,000, which is consistent with the revenues received in 2017. Lodging tax revenue has been favorably impacted by increased tourism activity at hotels, motels and Fort Worden. Currently, no decrease in lodging activity is forecast related to proposed future construction at Port Hudson. Real Estate Excise Taxes (REET) collections in 2017 were consistent with the 2016 experience at approximately $600,000. Both 2016 and 2017 revenues included one large commercial property sale that increased the REET tax collections. 2018 REET revenues are budgeted at $510,100. These funds are used to fund capital improvements and related debt service, which reduces the City’s reliance on general fund dollars to make these payments. $1,726,225 $1,902,891 $2,274,737 $2,256,780 $2,200,000 $2,308,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2014 Actual 2015 Actual 2016 Actual 2017 Adopted 2017 Est Actual 2018 Proposed Retail Sales Tax Trend City of Port Townsend 2018 Budget Page 9 of 172 Below is a chart showing the trend of Business & Occupation, Special Purpose, REET and Lodging Taxes: Overhead Cost Recovery is projected to increase by approximately $210,831 in 2018. This increase is offset by the additional funds transferred to the Community Services Fund to cover that funds’ overhead increase of $76,912. The net increase impact to the general fund is $133,919. Utility Revenues (Water, Sewer and Stormwater) are budgeted at the adopted rate increase of approximately 2.0% from the 2012 Water & Sewer Rate Update. The rate increase impacts the base fee and the usage rate for the Water and Sewer utilities. The revenue calculations include an increase of 1% for new accounts added to the utility. These assumptions are consistent with the draft rate model that has been prepared by FCS consulting group and reviewed by City staff. Water surcharge for 2017 was $18 per month per account. The current adopted rates for 2018 include an increase of $6 per month per account. The draft rate model has been updated to reflect the final estimated cost for the construction of the City’s new water treatment facility and 5mg reservoir. Due to the favorable financing terms, loan forgiveness grants, and below budget construction costs, the 2018 water surcharge rate increase is recommended to be reduced by $4 per month per account. The current adopted rates for the Sewer surcharge, $3 per month, are not scheduled to change in 2018. The Stormwater monthly rate is budgeted at the current adopted rate of $7.25 per month, with no increase projected for 2018. $640,446 $707,635 $853,522 $835,778 $835,778 $810,000 $233,998 $256,346 $292,057 $281,981 $291,981 $290,440$345,408 $537,695 $590,244 $460,000 $600,000 $510,000 $362,161 $443,859 $474,938 $460,000 $480,000 $480,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2014 Actual 2015 Actual 2016 Actual 2017 Adopted 2017 Est Actual 2018 Proposed Five Year Revenue Trend Bus & Occup Tax, Spec Purpose Tax, REET & Lodging Tax Bus & Occup Tax Spec Purpose Tax REET Lodging Tax City of Port Townsend 2018 Budget Page 10 of 172 A Stormwater surcharge was adopted in the 2017 budget at a rate of $3 per account per month. This surcharge will be used to fund repair and maintenance for the Stormwater utility. For 2018, this surcharge revenue is anticipated to generate $160,000. Below is a chart the proportionate shares of Water, Sewer, Storm and Capital Surcharge Revenue: Total Budgeted 2018 revenue, $42,021,292, less capital funding of $14,116,997 is projected to be $27,904,295 and is apportioned in the Operating Revenue Chart below. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2014 Actual 2015 Actual 2016 Actual 2017 Adopted 2017 Est Actual 2018 Budget Utility Revenue Trend WATER SEWER CAPITAL SC STORM City of Port Townsend 2018 Budget Page 11 of 172 Capital Revenues provide substantial funding for general government, street and utility projects through state and federal grants, public works trust fund loans, and drinking water state revolving fund proceeds. A smaller amount of capital funding may be administered with inter-fund loans, transfers, bank lines of credit or other debt financing. Additional details regarding capital projects are provided later in this document. KEY EXPENDITURE ASSUMPTIONS Labor Staffing costs represent the most significant portion of the City’s operating expenses. The City is balancing the need to provide fair and competitive wages while also maintaining appropriate service levels. The City is also presented with the challenge of addressing an aging work force and City staff have been charged with developing a succession plan to ensure continuity in key leadership positions. The proposed budget includes 109.9 positions for 2018. Payroll and Benefits – The 2018 proposed budget provides a 3.0% pay adjustment for most employees. The rate increases for the non-union and Teamsters union members are tied to the Seattle-Tacoma-Bremerton CPI-U. The June to June increase for this index was 3.0%. The current Police officer union agreement also ties cost of living adjustments to the same index and provides for a 3.0% pay adjustment in 2018. (Note: The Police Collective Bargaining Agreement expires on December 31, 2017. Negotiation of this agreement is currently underway. 2018 budget assumptions related CHARGES, $9,250,861 FINES, $50,300 INTERGOVT, $461,183 LICENSE/PERMITS, $368,750 MISC, $251,470 OVERHEAD, $1,445,409 TAXES, $12,438,320 TRANSFER IN, $3,638,002 2018 Proposed Operating Revenues $27,904,295 City of Port Townsend 2018 Budget Page 12 of 172 to police officers are based on the current agreement.) Medical costs for 2018 are forecast to increase by approximately 7.2% for the AWC benefit plan (general government non-represented employees). The Teamsters’ benefit plan which covers both the Police and General Government union employees is not projected to have a rate increase in 2018. Retirement contributions (PERS) are funded at 12.70% of eligible employee wages, an increase from last year’s rate of 11.76%. New Positions – The 2018 proposed budget includes the addition of full time positions in Police Administration, Engineering and Water Distribution/Water Quality. Seasonal help for Parks, Streets and Water Quality has also been funded in the 2018 budget. Police Administration – A Community Resources position is proposed for 2018. The proposed budget includes this position as a 0.75 position, starting in April 2018. This position will assist with special events, facility rentals, parking enforcement, parking planning, and administrative support for the Parks/Facilities Director. Engineering – An unbudgeted position was added in the Engineering department in mid-2017. This Civil Engineer III position will provide project management services to a variety of projects including the Water Street project. This position is budgeted as a full-time position in 2018. Water Distribution/Water Quality - The proposed budget for the Water/Sewer utility includes a full-time maintenance worker position. This position will support operations at the water treatment plant. With the opening of the new treatment plant in in early 2017, the Department of Health currently requires on-site staff seven days a week. This position will assist the current two treatment plant operations staff with the seven-day coverage and provide additional support to the water distribution crew. Seasonal Staff - The proposed budget for Parks includes 2 seasonal workers (total of 0.72 full time equivalent). The Streets/Sewer/Wastewater Collection areas each include a portion of the cost for 2 seasonal workers (total of 0.66 full time equivalents). Water Distribution/Water Quality departments propose the addition of 1 seasonal worker to assist with outdoor maintenance at the treatment plant during the summer months (0.33 full time equivalent). Total Proposed positions by department are allocated as follows: City of Port Townsend 2018 Budget Page 13 of 172 2018 City Manager Budget Message Page 14 of 22   Non-Labor Listed below are highlights of significant expense increases in 2018: General Government –  General Fund – $55,000 increase in liability insurance through our WCIA insurance risk pool  General Fund - $38,000 increase in cost of dispatch services  General Fund – $21,000 increase in City-wide training and supervisor/staff coaching  General Fund - $20,000 appropriation to hire a consultant to assess our inventory of software programs and provide recommendations for new platforms for financial and other technology services (total of $40,000 – 50% funded from Utility Finance)  Library - $17,000 increase in overhead allocation and $5,000 increase in collection additions  Lodging Tax Fund - $20,000 increase in facility rentals (City & Port / Wooden Boat) and increase in tourism promotions  Real Estate Excise Tax - $35,000 increase in transfers for General & Street capital projects and $50,000 increase in transfers to debt service to fund bond payments  Fire & EMS Services Fund expense increase of $68,000 is related to increased property tax revenues that are passed through to East Jefferson Fire Rescue Admin, 7.6 Finance/HR, 9 IT, 2 DSD/Planning, 8.33 Police Dept, 19.75 Parks / Rec,  11.40961538 Library,  9.630769231 Facilities / Maint, 5.75 Public Works,  34.41615385 Seasonal, 2.041153846 Proposed 2018 Positions ‐ 109.93 Total • Community Services - $84,000 in propane cost for Mountain View and City Hall for increased per unit costs • Community Services - $20,000 purchase of electronic door handles for City facilities • Community Services - $10,000 utility cost increases • Community Services - $76,000 overhead allocation increase • Debt Service - $60,000 increased cost for general government debt service Utility Funds - • Water/Sewer/Stormwater Utilities - $47,000 increase in tax liabilities for state Business and Occupational Taxes assessed on the City. • Water/Sewer Utilities – $60,000 increase in Public Works Trust Fund Loan payments for the water treatment facility and 5 mg reservoir loans • Water/Sewer Utilities - $140,000 purchase of dewatering unit • Water/Sewer Utilities – $30,500 for Gaines Street pump • Water/Sewer Utilities - $39,000 for roof, windows and heat pump repairs at the Kuhn Street property • Water/Sewer Utilities - $30,000 replacement for the chlorine storage tank • Water/Sewer Utilities - $460,000 transfer to the Equipment Rental and Replacement fund for the purchase of a new vactor truck • Water/Sewer Utilities – Transferred expense allocations from revenue generated by the $3 per account/per month maintenance surcharge to fund other improvements for the water system ($155,000) and the sewer system ($140,000) • Water/Sewer Utilities - $50,000 for Biosolids asphalt pad for composting facilities • Storm Utilities – Transferred expense allocations from revenue generated by the $3 per account/per month storm maintenance surcharge to fund other improvements in Storm Operations ($160,000). Internal Service Funds - • Equipment Rental and Replacement Fund – Vehicle purchases - $460,000 vactor truck; $34,600 on call vehicle; water department 1 ton and ½ ton truck - $46,000 • Unemployment Self-Insurance - $16,500 increase in unemployment claims based on claims filed in 2017 City of Port Townsend 2018 Budget Page 15 of 172 Total Proposed Expenses by Type: Proposed Total 2018 Expenditures in the chart above include proposed appropriations for water, sewer, general and street capital funds. This chart includes transfers out to other funds. Transfers are internal accounting transactions expended in one fund and recognized as an equivalent revenue in another fund. Transfers in the above chart include the operating fund transfer from the General Fund to support the Community Services Fund for $1,034,000, a transfer from the Water/Sewer Fund to the ERR-Fleet Fund for $460,000 for the purchase of a vactor truck, transfers from various funds to support the GO Debt Service Payments for $1,267,855, and capital fund transfers for $5,963,903. The Proposed 2018 Operating expenditure chart below excludes capital expenditures and the transfers out to other funds, reflecting operating, overhead and debt service related expenditures. INTERGOV'T, $7,300,050 EQUIP/SOFTWARE, $1,136,968 DEBT SVS, $4,448,629 OTHER IMPROVEMENTS, $580,000 CAPITAL, $7,578,500 TRANSFERS, $9,717,235 WAGES & BENEFITS, $10,869,614 MISC OTHER, $1,627,047 REPAIRS & MAINT, $273,044 PROFESSIONAL SVS, $768,052 TRAINING / TRAVEL, $219,389 SUPPLIES, $948,239 Proposed 2018 Total Expenditures by Type $45,446,768 City of Port Townsend 2018 Budget Page 16 of 172 Total Proposed Operating Expenses by Type: 2018 CAPITAL PROJECTS The proposed 2018 budget has a variety of significant capital projects that add new infrastructure to the City and improves aging infrastructure. General Government and Street Capital Projects included in the 2018 capital budget that are currently underway and have secured funding sources: • Mountain View Phase III repairs and upgrades to facilities on the campus that houses the police station, pool and non-profit organizations • Mountain View CDBG project that focuses on the interior repairs and improvements for the Food Bank and Working Image, two non-profit organizations housed at the Mountain View campus • Completion and close-out of the Howard Street extension from Sims Way to Discovery Road • Library capital improvements including roof and window replacements for the Library addition • Visitor’s Center Sims Way frontage improvements • Water Street Overlay project • SR 20 Pedestrian Walkway • 7th Street design concept INTERGOV'T, $7,300,050 EQUIP/SOFTWARE, $1,136,968 GEN OBLIG DEBT SVS, $1,642,656 OTHER IMPROVEMENTS, $580,000 WAGES & BENEFITS, $10,869,614 UTILITY DEBT SVS, $2,805,973 MISC OTHER, $1,627,047 REPAIRS & MAINT, $273,044 PROFESSIONAL SVS, $768,052 TRAINING / TRAVEL, $219,389 SUPPLIES, $948,239 Proposed 2018 Operating Expenditures by Type $28,151,033 City of Port Townsend 2018 Budget Page 17 of 172 • Jefferson Street Sidewalk project • Complete Streets projects Water/Sewer and Stormwater Utility Capital Projects included in the 2018 capital budget that are currently underway and have secured funding sources: • Water Treatment Facility and 5 Million Gallon Reservoir project close out • Water Street Overlay project – replacement of water line and other utility improvements • Big Quill Diversion project – repair/improvement of the Big Quill dam infrastructure Water/Sewer and Stormwater Utility Capital Projects included in the 2018 capital budget that are in either the planning or design stage with permanent financing yet to be identified: • Sewer Outfall improvement • Regional Storm water project related to the Howard Street extension (partially funded by a CERB loan) 2018 COUNCIL AND CITY-WIDE GOALS In 2014, the Council adopted a 3-year Strategic Plan for the City of Port Townsend. In early 2016, the Council met to update this strategic plan. The 2018 budget continues to align our operating and capital plans with the goals and objectives detailed in the strategic plan (Exhibit A). To meet these goals, City staff will work on the following actions in 2018: • Close out of the water projects - LT2 Water System Improvements - Filtration Plant and 5 Million Gallon Reservoir ($25 million over four years!) • Close out the Sims Way Gateway and Howard Street improvement projects • Develop the Regional Stormwater Facility for the Howard Street area • Maintain support for the three major strategic investment goals: o Sims Way Gateway and Howard Street sub area plan o Fort Worden PDA improvements o Mountain View Commons improvements • Complete the Critical Areas Update and Stormwater Plan • Support community partners in identifying solutions for affordable housing • Evaluate options for long-term financing solutions for: o Street repair and maintenance and a Pavement Management Program o Parks and Recreation maintenance and programs o Library capital improvements • Consolidate and update City financial policies, forecasts, and plan • Update policy regarding Equipment Rental and Replacement (ERR) Fund contributions and replacement schedules • Succession planning for anticipated senior staff transition over next 2-3 years City of Port Townsend 2018 Budget Page 18 of 172 Prepared by Casey Reeter caseyreeter@yahoo.com Adopted June 20, 2016 City of Port Townsend Three-Year Strategic Plan 2016-2018 Vision: A vibrant, diverse community primed for economic growth Mission: Facilitate the community’s aspirations for a thriving small town quality of life as envisioned in the five key issues of the Comprehensive Plan Audience: Serving current and prospective citizens and visitors of Port Townsend and Jefferson County Objectives Goals Strategies Actions / Measures 1. Build small town quality of life for all ages that ensures equitable access to amenities and provides for community resilience and self-reliance. • Adopt an Updated Comprehensive Plan that reflects the community’s vision and addresses WA State Growth Management Act mandates by September 2016 • Adopt a standard measure for community resilience by 3rd quarter 2017 • Implement transparent, equitable, accessible, and inclusive planning processes that:  Engage and inform citizens  Minimize scope creep  Recognize alternative points of view  Call out milestones and measures of success • Update Development Regulations consistent with WA State and Best Management Practices  Docket specific priorities in Comprehensive Plan  Adopt Chapter 16.08 flood damage Dec 2018  Adopt Critical Areas Update June 2017  Amend PTMC to allow Electric Vehicle infrastructure in residential districts  PC review and recommend revisions to amend PTMC to allow commercial kitchens/food hubs in public zones 2. Develop diverse business opportunities that strengthen local economy and pave the way for young families to thrive. • Increase capacity for new business development. • Benchmark targets for well-balanced commercial growth. • Create diverse commercial districts that generate family wage jobs and retain local retail income • Align code with business needs and community vision • Allow for advanced-tech, light industrial, and craft mfg. • Integrate business with adjacent residential areas • Demonstrate environmental stewardship  Complete Howard Street construction 2017  Define specific uses, standards, and zoning for Howard Street  Review development regulations for Upper Sims Way  Revisit Home Occupation requirements  Conduct code audit to align code with business needs and community vision  Work w/PUD to engage Broadband provider 3. Establish systems to support diverse housing options with perpetual affordability. Establish the City’s role as facilitator for advancing housing initiatives. • Conduct code audit to increase range of housing types and affordable/workforce housing opportunities • Ensure universal access to information infrastructure • Evaluate multiple funding models: State & Federal Aid, Low-risk financing, Grants, Public-Private Enterprise • Increase coordination with partners  Adopt updated zoning code  Code audit/adopt regulations for short-term rentals that support affordable housing while addressing business needs  Map broadband infrastructure to ensure equitable access  Select organizational/funding model to support perpetual affordable housing  Develop ADU brochure  Assign city liaison to coordinate with housing partners 4. Ensure sustainable future for public services and facilities. Source funding and implement plans for: • City Parks & Rec • Streets / Transportation Options • Utilities • Mt. View Commons (phase 2) Evaluate multiple funding models: • State and Federal aid, grants, low-risk loan financing • Consider land and timber sales/conservation • Evaluate enterprise models (private-public) • Consider fire district annexation • Special purpose districts (e.g. Parks District) • Renegotiate Mill contract  Update Water/sewer rate study  Conduct analysis to show fiscal impact of fire district options  Adopt storm water functional plan by March 1, 2017  Establish Benchmark/LOS standards 5. Foster a strong education community culture. Maintain the City’s role as an active facilitator for advancing education initiatives. • Cultivate partnerships with Fort Worden PDA, Peninsula College, and PT school district • Focus on higher educ. and future workforce training  Support completion of Bldg. 202 at Fort Worden  Support completion of Fort Worden’s “Makers Square”  Collaborate on Grant Street school library services  Offer City internships for High School students 6. Provide for a healthy City organization. • Invest in organizational capacity for leadership, operations, and response to citizen concerns. • Be an exceptional employer. • Provide leadership development and training • Invest in technology, systems, tools • Adopt and implement best practices • Revisit Advisory Boards and Commissions • Provide organizational capacity for proactive City leadership and collaboration  Career pathing plan  Approve annual value-added training program  Annually updated value-added systems plan  Annually review citizen concerns and apply feedback process  Capacity for legislative action & Human Rights Commission  Conduct citizen satisfaction survey DEFERRED MAINTENANCE AND UNMET NEEDS The City has begun to address various unmet community needs during the Comprehensive Plan process. This plan was adopted in September 2017. This planning process allowed the community to help identify what levels of service are financially sustainable and what commitment the public will need to make to ensure that sustainability. Recognizing our recovering but still limited resources, departments have identified specific unmet needs as either one-time or ongoing expenditures. These needs are included in the table below. Items identified as Deferred/Not Funded are not included in either the supplemental 2017 budget appropriations or the City Manager’s proposed 2018 budget. City of Port Townsend 2018 Budget Page 20 of 172 Fi n a n c e 1 f u l l t i m e A c c o u n t a n t / C o n t r a c t S p e c i a l i s t 1 0 0 , 0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Ad m i n i s t r a t i o n C o m m u n i c a t i o n s S p e c i a l i s t 1 0 0 , 0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l G e n e r a l F u n d P e r s o n n e l C o s t s - 20 0 , 0 0 0 Li b r a r y A d u l t S e r v i c e s L i b r a r i a n - F r e e z e 8 0 , 0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Li b r a r y A d d i t i o n a l L i b r a r y A s s i s t a n t H o u r s 18 , 4 3 7 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l L i b r a r y F u n d P e r s o n n e l C o s t s - 98 , 4 3 7 Co m m u n i t y S e r v i c e s 1 f u l l t i m e v o l u n t e e r / e v e n t s c o o r d i n a t o r 73 , 2 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P a r k s R e s t o r a t i o n o f 1 . 0 P a r k s M a i n t e n a n c e F T E 73 , 2 0 0 Deferred/Not Funded T o t a l C o m m u n i t y S e r v i c e s F u n d P e r s o n n e l C o s t s - 14 6 , 4 0 0 T o t a l D e f e r r e d & U n f u n d e d P e r s o n n e l C o s t s - 44 4 , 8 3 7 Ge n e r a l F u n d Li b r a r y F u n d Co m m u n i t y S e r v i c e s F u n d Ci t y o f P o r t T o w n s e n d Un m e t N e e d s - D e f e r r e d & U n f u n d e d I t e m s Bu d g e t 2 0 1 8 Fu n d / D e p a r t m e n t De s c r i p t i o n o f I t e m O n e T i m e O n g o i n g Status De f e r r e d & U n f u n d e d P e r s o n n e l C o s t s Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 21 of 172 Ma y o r & C o u n c i l W a g e & B e n e f i t E v a l u a t i o n f o r C i t y C o u n c i l m e m b e r s De f e r r e d - R e v i e w i n 2 0 1 8 f o r p o s s i b l e f u t u r e f u n d i n g Ad m i n i s t r a t i o n R e p l a c e C o n f e r e n c e R o o m T a b l e & C h a i r s 13 , 8 8 8 De f e r r e d / N o t F u n d e d Ad m i n i s t r a t i o n W e b s i t e U p d a t e s & i m p l e m e n t C o m m u n i c a t i o n s S t r a t e g y 40 , 0 0 0 De f e r r e d / N o t F u n d e d Ad m i n i s t r a t i o n C o m m u n i t y H e a l t h I n i t i a t i v e P r o g r a m 43 , 0 0 0 De f e r r e d / N o t F u n d e d Fin a n c e F i n a n c i a l S o f t w a r e C o n v e r s i o n ( c o s t w i l l b e s p l i t w i t h U t i l i t y B i l l i n g ) 12 5 , 0 0 0 De f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s C i t y M a n a g e r R e c r u i t m e n t A d v e r t i s i n g 2, 5 0 0 - 3 5 , 0 0 0 De f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s E n c r y p t i o n S o f t w a r e 93 8 De f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s V o l u n t e e r M a n a g e m e n t S o f t w a r e 2, 2 0 0 De f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s C i t y w i d e t r a i n i n g & c a r e e r p a t h i n g p r o g r a m 10 , 2 5 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Cit y C l e r k U p g r a d e t o L a s e r f i c h e S o f t w a r e - R e c o r d s M a n a g e m e n t 30 , 0 0 0 De f e r r e d / N o t F u n d e d Po l i c e A d m i n i s t r a t i o n C h e c k M a t e A s s e t / I n v e n t o r y S o f t w a r e 6, 0 6 2 50 0 De f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s J e f f e r s o n C o u n t y S h e r r i f f C o v e r a g e - O v e r t i m e 25 , 0 0 0 De f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s P P E E q u i p m e n t - R e s p i r a t o r M a s k s ( Q t y 1 5 ) 12 , 4 3 5 De f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s P P E E q u i p m e n t - H e l m e t s ( Q t y 1 5 ) 21 , 1 2 0 De f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s E q u i p m e n t - M o b i l e P a r k i n g E n f o r c e m e n t C o m p u t e r 9, 7 7 6 De f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s T r a i n i n g i n c r e a s e 5,0 0 0 De f e r r e d / N o t F u n d e d T o t a l D e f e r r e d G e n e r a l F u n d N o n P e r s o n n e l I t e m s 32 9 , 4 1 9 15 , 7 5 0 Lib r a r y In c r e a s e i n L i b r a r y M a t e r i a l A c q u i s i t i o n s 5,0 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l D e f e r r e d L i b r a r y N o n P e r s o n n e l I t e m s - 5,0 0 0 Str e e t M a i n t e n a n c e S t r e e t M a i n t e n a n c e & R e p a i r 10 0 , 0 0 0 De f e r r e d / N o t F u n d e d Str e e t M a i n t e n a n c e A D A T r a n s i t i o n P l a n C o n s u l t i n g 70 , 0 0 0 De f e r r e d / N o t F u n d e d T o t a l D e f e r r e d S t r e e t N o n P e r s o n n e l I t e m s 70 , 0 0 0 10 0 , 0 0 0 Co m m u n i t y S e r v i c e s - A r t s C o m m i s s i o n N e w i n i t i a t i v e s r e q u e s t s f r o m A r t s C o m m i s s i o n 85 , 4 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - F a c i l i t i e s P i n k H o u s e C a r p e t R e p l a c e m e n t 3, 0 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Co m m u n i t y S e r v i c e s - F a c i l i t i e s W i n d o w B l i n d s f o r C i t y H a l l - A d d i t i o n a l F u n d s r e q u e s t e d 5, 0 0 0 Ad d ' l F u n d s d e f e r r e d : u s e e x i s t i n g m a i n t b u d g e t Co m m u n i t y S e r v i c e s - M t n V i e w G r i n d i n g & S e a l i n g C o n c r e t e F l o o r i n R e c B u i l d i n g F o y e r 5, 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - M t n V i e w R e p l a c e E n t r y D o o r i n F o y e r 6, 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - M t n V i e w D e m o l i s h O l d D e c k 2, 0 0 0 In c l u d e d i n 2 0 1 7 O p e r a t i n g B u d g e t Co m m u n i t y S e r v i c e s - P a r k s K a h T a i B a t h r o o m R o o f i n g 7, 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - P a r k s T r a i l M a i n t e n a n c e ( P u g e t S o u n d C r e w ) 5, 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - P a r k s K u b o t a U t i l i t y V e h i c l e f o r T r a i l W o r k 10 , 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - P o o l R e b u i l d S a u n a 5, 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - P o o l G r i n d & S e a l L o c k e r R o o m F l o o r s 9, 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - P o o l C l i m b i n g W a l l , S l i d e , P l a y g r o u n d 43 , 0 0 0 De f e r r e d / N o t F u n d e d T o t a l C o m m u n i t y S e r v i c e s N o n P e r s o n n e l I t e m s 10 0 , 0 0 0 85 , 4 0 0 St r e e t C a p i t a l P U D U n d e r g r o u n d i n g / P a t h w a y s 35 , 0 0 0 De f e r r e d / N o t F u n d e d St r e e t C a p i t a l S R 2 0 O v e r l a y ( C i t y P o r t i o n ) 30 , 0 0 0 De f e r r e d / N o t F u n d e d St r e e t C a p i t a l N o n M o t o r i z e d P l a n 15 , 0 0 0 De f e r r e d / N o t F u n d e d St r e e t C a p i t a l 7 t h S t r e e t D e s i g n 10 , 0 0 0 De f e r r e d / N o t F u n d e d St r e e t C a p i t a l P e d e s t r i a n W a l k w a y ( S R 2 0 ) L o g a n S t t o H a n c o c k S t 80 , 0 0 0 De f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - P a r k s R e p a i r s t o S k a t e P a r k F e n c e 25 , 0 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l G e n e r a l C a p i t a l F u n d N o n P e r s o n n e l I t e m s 19 5 , 0 0 0 - T o t a l U t i l i t y F u n d N o n P e r s o n n e l I t e m s - - Po l i c e O p e r a t i o n s P o l i c e P a t r o l V e h i c l e s ( Q t y 2 ) 16 3 , 6 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Eq u i p m e n t R e n t a l - F l e e t D u m p t r u c k r e p l a c e m e n t - S t r e e t s 85 , 0 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l E q u i p m e n t R e n t a l F u n d N o n P e r s o n n e l I t e m s 24 8 , 6 0 0 - T o t a l D e f e r r e d & U n f u n d e d N o n P e r s o n n e l I t e m s 94 3 , 0 1 9 20 6 , 1 5 0 To t a l D e f e r r e d & U n f u n d e d P e r s o n n e l & N o n P e r s o n n e l I t e m s 94 3 , 0 1 9 65 0 , 9 8 7 Eq u i p m e n t R e n t a l F u n d s De f e r r e d & U n f u n d e d N o n P e r s o n n e l I t e m s Ge n e r a l F u n d Li b r a r y F u n d St r e e t F u n d Co m m u n i t y S e r v i c e s F u n d Ge n e r a l & S t r e e t C a p i t a l F u n d s Ut i l i t y F u n d s Ci t y o f P o r t T o w n s e n d Un m e t N e e d s - D e f e r r e d & U n f u n d e d I t e m s Bu d g e t 2 0 1 8 Fu n d / D e p a r t m e n t De s c r i p t i o n o f I t e m O n e T i m e O n g o i n g S t a t u s Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 22 of 172 BUDGET 2018 City Council Questions for Staff – Budget 2018 Q. I would request bright clear striping for pedestrian crossings throughout the city. It should take precedence over bike and parking striping. (Pam Adams) A. Comment noted by staff. Q. In the unmet needs, please breakdown the $43,000 between the climbing wall, playground and slide for the pool. Also, the PUD undergrounding/pathways – was this for Discovery Road and does this mean the PUD will not do their work? (Bob Gray) A. The $43,000 of requested items for the pool breaks down as follows: Climbing wall - $18,000; Slide - $15,000; Inflatable Playground - $10,000. The PUD will do the undergrounding work but the gravel path over the undergrounding area was deferred. Q. LTAC – Can we get a list of all of the applications for LTAC funding showing the ones that were not approved? The Debt Servicing, tourism infrastructure – is this for the VIC project? If not, what is it for? Please provide us with a copy of the request for funds from the PDA. There are several studies mentioned – the Hotel Vacancy and Performing Arts Studies. Were both of these supplements from 2017? I did not see the Performing Arts study mentioned in the supplemental. Were those approved after the 2017 LTAC budget was approved? (Bob Gray) A. The LTAC budget is prepared by the Marketing consultant, the LTAC chair and the City Manager. This budget is submitted to the LTAC committee for discussion; the LTAC committee recommends budget appropriations to the City Council for approval as part of the overall budget process. The committee does not have a formal application process but suggestions for funding are considered. The PDA proposal at LTAC was for $25,000 annually over 20 years. LTAC recommended approval of the $25,000 amount in 2018 and then separately recommended that Council commit to the $25,000 over the next 20 years, with a non-appropriation clause that does not bind future Councils. City of Port Townsend 2018 Budget Page 23 of 172 Debt service in the LTAC fund is for the improvement projects on City owned property that facilitate tourism. $100,000 of debt service is related to the bond funded projects - Waterfront Esplanade, wayfinding project and other tourism infrastructure. $25,000 of additional debt service is included in the 2018 budget to assist with the repayment of the Visitor Information Center improvements on City property (bond financed in 2017). The hotel vacancy and preforming arts studies were both included in the 2017 supplemental but may need to be re appropriated in 2018 if the funds are not spent before year end. These studies were included in the 2017 supplemental budget that the LTAC committee recommended and forwarded to Council for approval. Q. Please show the numbers of late payments and shutoffs for 2016 and to date in 2017. (Bob Gray) A. The 2015, 2016 and 2017 (year to date) utility fact sheets are included at the end of this section. Q. GO debt – As mentioned at the meeting, can we see the total debt payments for 2015, 16,17, and est for 18 (see section 7 page 2)? Does the loan to Homeward Bound and corresponding interfund loan affect our 2018 debt capacity and if so, is that in the pie chart? Also, the line of credit? (Bob Gray) A. Interfund loans are not included in the debt capacity calculation. The line of credit only impacts the calculation if any dollars are drawn on the line of credit. We do not anticipate any outstanding amounts on the line of credit either at the end of 2017 or 2018 so these amounts are excluded. The General Obligation Debt Service is listed below. The chart below shows the method for calculating the reserve target. City of Port Townsend 2018 Budget Page 24 of 172 Q. Do council reserve monies need to be allocated before December 31? (Pam Adams) A. Unspent expenditures are not carried over to the next year. If not spent, the fund reserve increases. Q. Do we have a designated parking enforcement employee? (Pam Adams A. The proposed 2018 budget includes a community services officer position that would begin in April 2018. The position would have responsibilities for parking, special events, facility rentals and administrative support. Q. Library fines - $10,000 in 2015 down to $4500 in 2017 and nothing proposed for 2018. Fines are a source of revenue for libraries and we should enforce them. (Pam Adams) A. As a member of the Cooperative Library Automated Network (C.L.A.N.) consortium the Jefferson County Library and the Port Townsend Public Library Debt Service Payments as a % of Gen Gov't Revenue: 2015 2016 2017 Est 2018 GO Bond Interest & Principal 1,138,685 1,468,799 1,578,619 1,642,655 1,138,685 1,468,799 1,578,619 1,642,655 General Fund Revenue 7,536,278 8,276,569 8,589,942 8,648,366 Less: Transfers (6,713) (62,076) (10,000) (10,000) Less: Non Revenue (29,224) (5,830) (256,445) (4,000) FD 101 - Drug Enforcement - - - - FD 102 - Contingency Fund 4,155 401 500 500 FD 110 - Street 762,651 826,200 867,547 837,942 FD 120 - Library 1,053,507 1,069,187 1,050,919 1,077,601 FD 135 - Real Estate Excise Tax 537,901 590,630 600,900 510,100 FD 150 - Lodging Tax 443,859 474,938 480,000 480,000 FD 171 - Fire EMS 2,389,385 2,399,580 2,317,766 2,385,876 FD 180 - Affordable Housing 10,036 10,118 10,200 10,000 FD 190 Community Dev Block Grants 39,667 17,533 20,219 13,623 FD 199 -Community Services 614,029 757,593 922,268 964,448 FD 200 - Debt Service 102,590 262,212 403,600 407,300 FD 301 - General CIP 13,458,123 14,617,055 14,997,416 15,321,756 8.5% 10.05% 10.5% 10.7% City of Port Townsend 2018 Budget Page 25 of 172 decided to no longer charge fines for late DVDs starting in January 2018. Having a source of revenue derived from punitive measures is seen as a barrier to service for our patrons. We have not charged late fines on other materials for many years, and DVDs were the last holdout of a very old library model. We are continually looking to improve our patrons’ library experiences and in fall of 2016 we introduced autorenewals to help patrons and did reduce revenue from fines, which we budgeted for in 2017. Being a part of the C.L.A.N. consortium we seek to make library services seamless for our patrons between our City and County libraries and are making these changes about fines together after thoughtful discussions in our organizations. This article from earlier this year discuss the shift in policy that many libraries nationally are doing to move away from library fines http://www.slate.com/articles/arts/culturebox/2017/02/librarians_are_realizi ng_that_overdue_fines_undercut_libraries_missions.html They (fines) do not actually work to get materials returned in a timely manner and that was there original impetus 150 years ago. Melody is talking with JCL about how to roll out this change away from library fines for January 2018. Q. Is the $10,000 of property tax revenue/associated expenditure in the Affordable Housing Fund earmarked? (Pam Adams) A. The fund has been used to reimburse DSD for the staff time spent on processing, and partially to offset the lost revenue from fee waivers for eligible housing projects. This is a budget action, and Council can choose to change this to a different amount or use, if desired. Changing this amount does not affect the waiver requirements in PTMC 3.36.011. Note: Based on discussion at the Council meeting on November 13, 2017, the transfer to the general fund from the Affordable Housing fund for $10,000 was eliminated; instead a $10,000 unidentified expenditure is included for the Affordable Housing Fund for 2018. Q. Where do I find rental revenues for city facilities and Mountain View nonprofit tenants? And are we negotiating with NAMI? (Pam Adams) City of Port Townsend 2018 Budget Page 26 of 172 A. The rental revenues are recorded as lease income in the Community Services Fund in the Mountain View section (Department 110). NAMI has requested space at Mountain View. The Parks and Community Services Director will be reviewing whether space may be available after the construction and current tenant relocation is completed. No negotiations have begun but the request is under review. Q. Do we get a monthly statement from the golf course? What do we base revenue projections on? It looks like expenditures are expected to increase. (Pam Adams) A. Yes, the City receives monthly reports from the Golf Course. The revenues are based on a percentage of the revenue that the golf course generates from gross receipts. The expenses represent the City’s share of improvement costs and overhead costs which may not correlate to the revenue generated. Q. Please show the estimates for where we are in meeting the council financial policies for the end of FY 2017 and if that is not easy to estimate, the estimates as of the fourth quarter. Perhaps I’m just missing it but a quarterly report showing this comparison would be nice in the future. (Bob Gray) A. The financial policy section of the 2018 Budget Book includes this information. In general, all funds meet or exceed the financial policy guidelines. We will provide more information and discussion on this item at the November 13th meeting. Q. Which report shows the beginning 2017 and current balances for each of the fund categories as of the end of each month and is there one that estimates the ending balances for Dec 31? (Bob Gray) A. The fund summaries show the beginning 2017 fund balances and the projected ending fund balance. Also, Sheila Danielson distributes monthly financial reports with this information via email each month to all council members. City of Port Townsend 2018 Budget Page 27 of 172 Q. Can we get a schedule showing the growth and/or reductions in numbers and dollars for total staffing levels over the last 6 years? Please include part-time and temporary employees. (Bob Gray) A. This information is provided in the staffing section of the 2018 Budget Book. Q. Also in staffing, I’ve picked up that we’ve recently added three new positions. We’ve added an engineering position in public works for the water street project. Is this a temporary position? We also added a deputy public works position and added one temporary position by bringing on the new public works director before the current public works director retires. Were these positions in the 2017 budget and if not, what is the impact on that budget? (Bob Gray) A. The engineering position is new and is not a temporary position. The impact to 2017 budget is approximately $46,603 and the 2018 budget impact is approximately $101,680. The deputy public works position replaces the City Engineer position, providing an increase in responsibility for the City Engineer. This position was in the budget but not at the same rate of pay. The impact to the 2017 Operating Budget is approximately $1,700. The overlap between the new PW Director and the retiring Director was not budgeted. Recruiting travel stipends had a $9,000 impact to the 2017 Operating Budget and the overlap in salary impact is approximately $48,600. Q. How many part-time and temporary positions did we have this year and did any of those position receive health insurance benefits? Are there any full- time positions without health benefits? (Bob Gray) A. This is a little bit difficult to answer due to the part time staffing programs for the Library and the Pool. The Library uses part time employees for Library assistants, associates and pages and the Pool uses part time employees for lifeguard and swim instructor positions (the majority are part time positions). Also, Parks and Streets both use temporary seasonal workers during the summer time. City of Port Townsend 2018 Budget Page 28 of 172 Non-seasonal temporary positions are a more unusual occurrence and are usually brought on for a limited duration/special project. During 2017, we had additional temporary workers: Temporary finance assistant to cover a medical leave Temporary assistance for the Howard Street sub area plan (2 individuals) Temporary (one day a week) assistant for PW/DSD Part time and temporary positions receive some benefits (as mandated by law) and/or pro-rated benefits. In general, positions over 20 hours qualify for health insurance but pay a pro rata amount of the premium. Full time employees are all offered health insurance. Q. At a work session, it was mentioned that REET funds were tracking above budget levels but use of those funds is primarily for debt payments. Which debt was being referred to? (Bob Gray) A. REET funds may be used to fund debt payments for capital projects, which is what our long-term debt proceeds are used for (2008, 2010, 2012 and 2017 LTGO bonds). The 2018 budget includes $510,000 of REET receipts allocated for debt service. Total debt service for the year is $1,675,000. General fund, lodging tax, and streets also provide contributions for debt payments. Q. While the divisions submit their “needs” for the upcoming budgets, in my opinion because of our positions in the community the city council members should be asked to do the same, perhaps even as a committee. Anyway, here are my suggestions (From Bob Gray): a. Early on Mr. Ryan Givens with AHBL, our subarea consultant told the planning commissioners that upper sims way is too difficult to cross on foot. The commissioners agreed. Many residents including myself (and I cross that street daily) know this to be true. People with mobility issues, especially those in wheel chairs are especially vulnerable. The new solar-powered blinking lights on the walking figure-and-arrow signs City of Port Townsend 2018 Budget Page 29 of 172 on Sheridan at 7th and 9th streets would greatly help with this problem. Did the city pay for those signs on Sheridan street; how much do they cost; and can we get some for upper sims? Other crossing areas in town should also be considered. b. The pool is the most successful recreation activity of the city. The pool director has asked for equipment that children would enjoy including a slide and some type of inflating water play area. Children and teens are the age categories that have not kept up with the growth in pool usage by adults and seniors. c. By recruiting and organizing city volunteers, a volunteer coordinator would save funds and improve the attractiveness of the city. d. Speaking of volunteers, the city should sponsor an end-of-the year lunch/party for all volunteers just to say thank you. A. Comments have been noted by Staff. Note: The Library did sponsor a volunteer appreciation event last year that was very well attended and received. Q. I read somewhere that we have increased tourism funding. Can you isolate how much in the budget is spent toward promoting tourism? (Bob Gray) A. Tourism promotion is funded with Lodging Tax Funds. Expenditures in the 2018 budget for tourism promotion total $354,838. Total Lodging Tax Revenue is expected to be $480,000. The remainder of funds are used for debt service payments. The Lodging Tax Committee met and sent their recommended 2018 budget to the City Manager, which is included in the total Proposed budget. In 2017 our estimated tourism promotion expenditures are $380,000 which are up from the adopted budget of $333,734. Supplemental requests are funded from higher than expected Lodging Tax Revenue and will be used for a Hotel Vacancy Study, Facility rentals for the Port and Wooden Boat Festival and a Performing Arts Study. City of Port Townsend 2018 Budget Page 30 of 172 Q. Related, the LTAC committee proposes expenditures for the next fiscal year. Last year I found a listing of those expenditures but haven't been able to this year. Can you detail what they are recommending and if management agrees? (Bob Gray) A. Please see the table below detailing the proposed Lodging Tax Budget for 2018. Q. It wasn’t clear to me the decision you mentioned if the recommendations by Pyramid Communications, specifically webpage and communications staff person are planned for next year? (Bob Gray) A. These items are on the deferred / unmet needs list and are currently not included in the proposed 2018 budget. Q. Suggestion - I think that the budget message is quite detailed and perhaps an opening introduction would help in the understanding. Such as challenges we've faced (and overcome) during and after the recession; an overview of the current budget outlook and summary of priorities; and challenges we still face. Just a suggestion but we know that often the narrative is the only part of a budget that people read. (Bob Gray) A. Comments have been noted by staff. Time permitting, Finance Director and City Manager will work on an operating summary. Port Townsend Lodging Tax Advisory Committee 2018 DRAFT Tourism Marketing & Promotion Budget Updated General Marketing & Promotion $158,500 Gen. Fund Administrative Services $12,838 Visitor Info Center Operations (incl. rent)$115,000 Misc.$3,500 Winter Marketing Campaign $20,000 Fort Worden PDA $25,000 Facilities Rental - City $10,000 Facilities Rental - Port $10,000 Debt Service (tourism infrastructure)$125,000 Total budgeted lodging tax revenue $479,838 City of Port Townsend 2018 Budget Page 31 of 172 City of Port Townsend 2018 Budget Page 32 of 172 20 1 5 U t i l i t y F a c t S h e e t Ja n u a r y F e b r u a r y M a r c h A p r i l M a y J u n e J u l y A u g u s t S e p t e m b e r O c t o b e r N o v e m b e r D e c e m b e r Y E T o t a l To t a l U t i l i t y A c c o u n t s 50 0 3 5 0 0 5 5 0 0 6 5 0 0 8 5 0 1 3 5 0 1 5 5 0 2 0 5 0 2 2 5 0 2 5 5 0 3 1 5 0 3 1 5 0 3 2 5032 R e s i d e n t i a l A c c o u n t s 41 9 3 4 1 9 7 4 1 9 8 4 1 9 9 4 1 9 9 4 2 0 1 4 2 0 5 4 2 0 7 4 2 1 0 4 2 1 6 4 2 1 6 4 2 1 7 4217 C o m m e r c i a l A c c o u n t s 49 7 4 9 7 4 9 7 4 9 7 4 9 9 4 9 9 5 0 0 5 0 0 5 0 0 5 0 1 5 0 1 5 0 1 501 Ir r i g a t i o n / G o v e r n m e n t / F i r e T a p A c c o u n t s 3 1 3 3 1 1 3 1 1 3 1 2 3 1 5 3 1 5 3 1 5 3 1 5 3 1 5 3 1 4 3 1 4 3 1 4 314 # o f A c c o u n t s t h a t r e c e i v e d s h u t o f f n o t i c e s 9 0 60 63 78 69 69 74 52 67 69 73 79 843 # o f A c c o u n t s s h u t o f f 10 7 11 11 12 4 7 9 12 5 9 9 106 To t a l A c c o u n t s w i t h p a s t d u e b a l a n c e > 9 0 da y s 26 8 2 6 9 2 6 0 2 6 3 2 7 0 2 6 5 2 6 2 2 5 8 2 4 9 2 5 4 2 5 1 2 5 3 253 To t a l A c c o u n t s w i t h p a s t d u e b a l a n c e > 9 0 da y s a n d a c c o u n t b a l a n c e > $ 5 0 0 46 52 44 48 47 43 42 42 39 50 43 42 42 # o f A c c o u n t s o n P a y m e n t P l a n s 62 4 7 5 9 4 6 3 3 3 2 54 # o f A c c o u n t s o n L o w I n c o m e R a t e 1 7 8 1 8 2 1 8 4 1 3 0 1 4 3 1 5 1 1 5 3 1 5 7 1 6 2 1 6 3 1 6 5 1 7 1 162 # o f A c c o u n t s s e n t t o C o l l e c t i o n s 12 2 0 1 0 2 5 2 3 3 1 22 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 33 of 172 20 1 6 U t il i t y F a c t S h e e t Ja n u a r y F e b r u a r y M a r c h A p r i l M a y J u n e J u l y A u g u st S e p t e m b e r O c t o b e r N o v e m b e r D e c e m b e r To t a l U t i l i t y A c c o u n t s ( N o F i r e T a p s / H y d r a n t s ) 4 9 6 6 4 9 7 4 4 9 7 6 4 9 7 8 4 98 1 4 9 8 3 4 9 9 0 4 9 9 9 5 0 0 5 5 0 1 7 5 0 1 7 5 0 2 5 R e s i de n t i a l A c c o u n t s ( R e s / M F / D u p ) 43 5 0 4 3 5 8 4 3 6 0 4 3 6 1 4 3 6 3 4 3 6 5 4 3 7 2 4 3 7 8 4 3 8 4 4 3 9 5 4 3 9 5 4 4 0 3 C o m m e r c ia l / G o v t A c c o u n t s 43 4 4 3 4 4 3 5 4 3 5 4 3 6 4 3 6 4 3 7 4 3 8 4 3 8 4 3 9 4 3 9 4 3 9 Ir r i g a t i o n A c c o u n t s 16 4 1 6 4 1 6 3 1 6 4 1 6 4 1 6 4 1 6 3 1 6 5 1 6 5 1 6 5 1 6 5 1 6 5 Ot h e r A c c o u n t s ( S t o r m / N o C h a r g e ) 18 1 8 1 8 1 8 1 8 1 8 1 8 1 8 1 8 1 8 1 8 1 8 # o f A c c o u n t s t h a t r e c ei v e d s h u t o f f n o t i c es 7 0 2 3 8 1 1 4 1 9 4 1 3 9 1 9 8 1 42 1 5 5 1 3 8 1 6 3 1 5 6 1 7 6 # o f A c c o u n t s s h u t o f f 15 9 4 0 9 1 1 1 6 6 1 2 1 1 9 1 5 1 1 # o f L o w I n c o m e A c c o u n t s s h u t o f f 0 0 4 1 0 0 0 0 2 1 0 0 To t a l A c c o u n t s w i t h p a s t d u e b a l a n c e > 9 0 d a y s 2 6 7 2 4 7 5 3 4 9 6 1 5 8 4 6 3 63 2 3 1 3 5 4 1 To t a l A c c o u n t s w i t h p a s t d u e b a l a n c e > 9 0 d a y s a n d ac c o u n t b a l a n c e > $ 5 0 0 39 3 6 2 8 2 8 3 1 2 6 1 8 2 1 1 6 1 6 1 8 1 9 # o f A c c o u n t s o n P a y m e n t P l a n s 3 4 5 1 3 3 3 0 5 0 4 7 # o f A c c o u n t s o n L o w I n c o m e R a t e 17 7 1 8 5 1 8 7 1 8 5 1 9 0 1 5 7 1 6 1 1 6 2 1 6 4 1 6 6 1 66 1 6 7 # o f A c c o u n t s s e n t t o C o ll e c t i o n s 1 4 1 1 2 2 3 7 1 1 2 4 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 34 of 172 20 1 7 U t i l i t y F a c t S h e e t Ja n u a r y F e b r u a r y M a r c h A p r i l M a y J u n e J u l y A u g u s t S e p t e m b e r O c t o b e r N o v e m b e r D e c e m b e r To t a l U t i l i t y A c c o u n t s ( N o F i r e T a p s / H y d r a n t s ) 5 0 3 2 5 0 3 8 5 0 4 4 5 0 5 3 5 0 5 9 5 0 6 3 5 0 7 0 5 0 7 4 5 0 7 5 5 0 8 3 R e s i d e n t i a l A c c o u n t s ( R e s / M F / D u p ) 4 4 0 8 4 4 1 4 4 4 2 1 4 4 2 9 4 4 3 5 4 4 3 6 4 4 4 3 4 4 4 6 4 4 4 6 4 4 5 4 C o m m e r c i a l / G o v t A c c o u n t s 44 1 4 4 1 4 4 0 4 4 0 4 4 0 4 4 2 4 4 2 4 4 2 4 4 3 4 4 3 Ir r i g a t i o n A c c o u n t s 16 5 1 6 5 1 6 5 1 6 6 1 6 6 1 6 7 1 6 7 1 6 8 1 6 8 1 6 8 Ot h e r A c c o u n t s ( S t o r m / N o C h a r g e ) 18 1 8 1 8 1 8 1 8 1 8 1 8 1 8 1 8 1 8 # o f A c c o u n t s t h a t r e c e i v e d s h u t o f f n o t i c e s 1 4 5 1 8 5 1 4 5 1 6 1 1 3 7 1 6 6 1 5 0 1 4 5 1 2 6 1 3 7 # o f A c c o u n t s s h u t o f f 19 1 0 1 7 1 6 2 0 1 0 2 0 1 3 1 0 7 # o f L o w I n c o m e A c c o u n t s s h u t o f f 0 0 0 0 1 1 3 0 0 0 To t a l A c c o u n t s w i t h p a s t d u e b a l a n c e > 9 0 d a y s 4 1 3 8 3 3 3 0 3 9 3 7 3 4 3 1 2 82 8 To t a l A c c o u n t s w i t h p a s t d u e b a l a n c e > 9 0 d a y s an d a c c o u n t b a l a n c e > $ 5 0 0 19 1 6 1 6 1 3 1 4 1 4 1 6 1 5 1 2 1 4 # o f A c c o u n t s o n P a y m e n t P l a n s 0 1 2 2 0 0 0 3 0 2 # o f A c c o u n t s o n L o w I n c o m e R a t e 16 7 1 7 2 1 7 5 1 7 3 1 7 4 1 6 0 1 6 6 1 6 8 1 7 0 1 7 2 # o f A c c o u n t s s e n t t o C o l l e c t i o n s 1 0 1 1 0 1 3 1 3 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 35 of 172 City of Port Townsend 2018 Budget Page 36 of 172 From: Dave Robison Executive Director Fort Worden Public Development Authority 200 Battery Way Port Townsend, WA 98368 (360) 860-7943 (office) (360) 643-1770 (cell) fortworden.org To: Lodging Tax Advisory Committee c/o City of Port Townsend 250 Madison Street, Port Townsend WA 98368 (360) 379-5047 cityofpt.us Re: Fort Worden PDA Request to Lodging Tax Advisory Committee for Funding The Fort Worden Public Development Authority (PDA) is submitting a request for $25,000 a year over the next 20 years to support operational and capital expenditures of our tourism-related facilities. The funds will primarily support facility enhancement and lodging expansion projects that we are confident will increase the PDA's lodging revenues by at least 5% a year. Our facilities currently offer 56,000 square feet of meeting space, three restaurants, a Servery (dining hall that serves up to 500 people) and 1571 lodging rooms. This proposal differs from the last three marketing assistance requests that the PDA has submitted. The marketing assistance has been essential to helping the PDA launch its new brand and repackage Fort Worden as an historical retreat in a magnificent natural setting—a creative place for arts, education and recreation— during its first three years of operations. With that assistance, the PDA was able to accomplish the following from 2015-2017: • Rebrand and control a wide variety of online listings related to Fort Worden State Park including user-review, regional tourism and travel-related websites. • Complete four phases of website enhancements resulting in an improved customer experience and increased efficiency as a sales tool for accommodations and meeting room reservations • Contract with third-party booking services in June 2016 resulting in over $275,000 in new leisure traveler lodging revenue through December 2017 • Hired a Google AdWords consultant and developed a six-month Google AdWords strategic plan to increase the Fort and Port Townsend's on-line presence. • Partner with the City of Port Townsend on a variety of print, digital and social media advertising that has increased Port Townsend and the Fort's exposure to metropolitan areas along the I-5 corridor. • Collaborate with campus and community partners to develop targeted visitor outreach and promotions. • Hire professional videographers and photographers to begin developing a strong multimedia portfolio for Fort Worden and City of Port Townsend marketing campaigns • Deliver two, 8-page tabloid inserts into regional newspapers • Develop a 8,000+ subscriber list for direct email campaigns • Partner with the Friends of Fort Worden to design and publish the Fort Worden Pad Map 1 117 dorm rooms are not included in this total. City of Port Townsend 2018 Budget Page 37 of 172 The PDA recently hired a Marketing and Sales Director that possesses years of experience marketing and selling a unique resort property as well as national hotels. This person will build upon the successes the PDA achieved with support from the LTAC funds. In addition to the Director, there are three sales managers and a wedding coordinator working full-time to sell all the Fort has to offer and promote the many additional opportunities Port Townsend has to offer. The LTAC marketing support combined with the PDA's resources and dedication to building a strong sales and marketing team has resulted in building a strong foundation to expand our tourism- related marketing and advertising for Port Townsend and Fort Worden. In 2017, this amount budgeted is $63,750 from the PDA operating revenues and $30,000 in LTAC funds. Over the last three years, since the PDA began managing Fort Worden hospitality services, it has continued to grow lodging revenues. Marketing efforts of course help facilitate this growth. Another contributor has been investments the PDA has made to improve/renovate some of the historical lodging facilities. These investments include: • Cottage Collection 235-Bliss Vista: Partial remodeled of the interior and replaced outdated windows with new energy efficient ones. Completed: June 2017. Cost: $49,941 Year ADR Occ % Total Revenue 2016 July-Oct $248 71% $23,504 2017 July-Oct $309 88% $37,292 Increase 59% • Officer’s Row Collection 16 – Bricks: Partial remodel of the interiors in four units. Completed: December 2016. Cost: $65,778 Year ADR Occ % Total Revenue 2016 Jan-Oct $212 21% $80,640 2017 Jan-Oct $302 31% $112,877 Increase 40% • Officer’s Row Collection 4-Generals Home: Full interior remodel and refurbish of all wood work in the units. Completed: June 2017. Cost: $341,092 Year ADR Occ % Total Revenue 2016 June-Oct $463 44% $99,668 2017 June-Oct $576 64% $150,358 Increase 51% • Cottage Collection 272-Lofts: Full interior remodel. Completed: June 2016. Cost: $140,000 City of Port Townsend 2018 Budget Page 38 of 172 Year ADR Occ % Total Revenue 2016 July-Oct $212 16% $15,490 2017 July-Oct $291 48% $68,722 Increase 77% • Group Housing 277-Reunion House: Interior replacement of floors, fixtures, wall repair and paint. Completed: August 2016. Cost: $69,600 Year ADR Occ % Total Revenue 2016 Sept-Oct $635 21% $8,253 2017 Sept-Oct $956 36% $21,032 Increase 155% All these projects were grant funded. Without the grant assistance, the PDA would not have been able to complete these upgrades, and in turn improve ADR & occupancy rates. The PDA would like to continue to complete one or two upgrade projects each year. We also plan to add new room types. Currently, our lodging portfolio lacks any single-room “hotel style” units. By 2019, the PDA plans to add a minimum of 10 new Glamping units, and then over the following two to three years, increase these units to 20. Over the next five years, we plan to add an additional 13 hotel-style single units as well. In addition to our lodging investments, we plan to launch our sustainability initiative that includes a few components to be rolled out in 2018. One is a $1,000,000 energy efficiency upgrade and the other is a comprehensive sustainable operations plan. During 2016, the PDA underwent an Energy Efficiency Audit that demonstrates if the PDA does the energy efficiency upgrades that is recommended; the PDA will recoup the investment over 20 years with energy cost savings. The PDA received a grant this year from the Satterberg Foundation to develop a property wide sustainability plan that addresses energy consumption, waste reduction, recycling, local sourcing, closed-loop systems, and green purchasing. The PDA will begin implementing this plan in 2018. The PDA is confident that with continued capital investment in new and enhanced lodging accommodations, implementing sustainable operating programs, and investing a minimum of $300,000 annually in our sales and marketing team (includes staffing and marketing, advertising and media outreach) will yield more than a 5% increase in lodging revenue each year, doubling its lodging revenues by 2030 and continuing to build the 5% increase. This proposal furthers the express purpose of the City of Port Townsend to establish the PDA to “facilitate private investment at the park and create jobs, which will build the City’s tax base; assist tenants and partners to promote and brand Fort Worden State Park as a Center for Lifelong Learning, and: enhance Fort Worden State Park as a significant heritage-based destination and attraction.” One of the challenges the PDA has faced is it does not have the collateral necessary to guarantee a loan or bond for new lodging improvement projects. A guaranteed annual LTAC contribution to the PDA will provide a dedicated funding stream to improve or enhance tourism related facilities at Fort Worden and will help us to leverage additional funding or financing for planned projects. City of Port Townsend 2018 Budget Page 39 of 172 City of Port Townsend 2018 Budget Page 40 of 172 CI T Y O F P O R T T O W N S E N D - A U T H O R I Z E D P O S I T I O N S * De p a r t m e n t / D i v i s i o n 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2018 vs 20172018 vs 2016 Ge n e r a l G o v e r n m e n t Ci t y M a n a g e r 1. 0 2 . 0 2 . 1 2 . 8 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 0 . 0 0 . 0 Ci t y A t t o r n e y 2. 6 1 . 5 2 . 1 2 . 1 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 3 . 0 3 . 0 4 . 0 3 . 0 2 . 7 3 . 5 3 . 6 3 . 6 3 . 6 0 . 0 0 . 0 De v e l o p m e n t S e r v i c e & P l a n n i n g 8 . 9 8 . 5 7 . 5 7 . 8 7 . 9 8 . 0 8 . 0 1 0 . 0 1 0 . 0 1 0 . 0 6 . 7 7 . 5 7 . 5 5 . 6 6 . 3 6 . 2 6 . 8 7 . 3 8 . 3 8 . 3 0 . 0 1 . 0 Fi n a n c e & U t i l i t y B i l l i n g ( U B ) 9. 0 9 . 0 9 . 1 7 . 8 7 . 8 7 . 8 7 . 8 8 . 2 8 . 2 7 . 2 8 . 2 9 . 2 8 . 2 9 . 4 8 . 5 6 . 1 6 . 1 6 . 1 6 . 4 6 . 0 - 0 . 4 - 0 . 1 Po l i c e A d m i n & O p e r a t i o n s 1 6 . 5 1 6 . 5 1 6 . 0 1 7 . 0 1 7 . 3 1 9 . 0 1 9 . 3 1 7 . 3 2 0 . 5 2 0 . 5 2 0 . 5 2 0 . 5 2 1 . 5 1 8 . 0 1 6 . 9 1 7 . 0 1 7 . 4 1 8 . 0 1 9 . 0 1 9 . 8 0 . 8 1 . 8 Ci t y C l e r k / H u m a n R e s o u r c e s 1 . 4 1 . 4 2 . 1 2 . 1 2 . 0 2 . 5 2 . 5 2 . 3 2 . 3 2 . 3 2 . 0 2 . 0 2 . 0 2 . 0 1 . 9 2 . 9 4 . 0 3 . 8 5 . 0 5 . 0 0 . 0 1 . 2 PE G T V S t u d i o 0 . 0 0 . 0 0 . 0 0 . 3 0 . 3 0 . 3 0 . 3 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 Ci t y E v e n t s , F a c i l i t i e s & R e s t r o o m s 0 . 9 0 . 0 0 . 0 0 . 2 0 . 2 0 . 3 0 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 4 2 . 6 2 . 3 2 . 7 2 . 9 3 . 5 3 . 5 3 . 5 0 . 0 0 . 0 St r e e t 2 . 4 4 . 9 3 . 3 1 . 7 2 . 1 2 . 9 1 . 9 1 . 9 2 . 5 2 . 5 2 . 3 2 . 5 2 . 5 2 . 0 2 . 0 1 . 8 1 . 8 2 . 1 2 . 1 2 . 2 0 . 1 0 . 1 Pa r k s M a i n t e n a n c e & R e c r e a t i o n 6 . 0 6 . 1 4 . 6 5 . 6 3 . 3 4 . 0 3 . 3 3 . 3 3 . 3 3 . 3 5 . 3 6 . 3 6 . 8 4 . 5 2 . 3 2 . 8 2 . 4 3 . 5 4 . 2 4 . 2 0 . 0 0 . 7 Po o l 4 . 5 6 . 2 3 . 7 3 . 7 4 . 5 4 . 1 4 . 5 4 . 9 4 . 1 4 . 5 4 . 7 6 . 2 7 . 2 4 . 8 4 . 1 5 . 5 4 . 9 6 . 9 7 . 7 7 . 9 0 . 2 1 . 0 Li b r a r y 7 . 6 8 . 5 7 . 3 8 . 3 8 . 3 9 . 7 1 0 . 4 1 0 . 1 9 . 6 9 . 8 1 0 . 9 1 1 . 7 1 1 . 8 1 0 . 9 1 1 . 1 1 1 . 0 1 0 . 2 9 . 6 9 . 6 9 . 6 0 . 0 0 . 0 Eq u i p m e n t R e n t a l 2 . 3 2 . 0 2 . 0 1 . 8 1 . 5 1 . 5 1 . 5 2 . 5 2 . 5 2 . 5 2 . 5 2 . 5 2 . 3 3 . 6 2 . 8 3 . 8 3 . 8 3 . 9 4 . 3 4 . 3 0 . 0 0 . 4 To t a l G e n e r a l G o v e r n m e n t 6 3 . 1 6 6 . 5 5 9 . 8 6 1 . 1 5 9 . 2 6 4 . 1 6 3 . 7 6 6 . 8 6 9 . 3 6 8 . 8 6 9 . 3 7 5 . 6 7 7 . 0 6 9 . 3 6 3 . 2 6 4 . 5 6 5 . 8 7 0 . 3 7 5 . 7 7 6 . 4 0 . 6 6 . 0 Pu b l i c W o r k s & Ut i l i t i e s ( e x c l U B ) Pu b l i c W o r k s A d m i n i s t r a t i o n 5. 0 4 . 1 3 . 1 2 . 1 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 1 . 7 2 . 3 2 . 1 2 . 1 2 . 1 3 . 2 3 . 3 0 . 1 1 . 2 Pu b l i c W o r k s E n g i n e e r i n g 7. 5 6 . 0 5 . 0 4 . 5 6 . 5 5 . 3 8 . 3 7 . 3 7 . 8 8 . 5 1 0 . 5 1 0 . 0 8 . 3 6 . 3 4 . 7 6 . 6 6 . 7 8 . 3 7 . 0 7 . 8 0 . 8 - 0 . 5 Ut i l l i t i e s 0.0 0 . 0 W a t e r D i s t r i b u t i o n 5. 7 7 . 5 4 . 0 6 . 0 6 . 1 5 . 8 5 . 8 5 . 8 5 . 6 5 . 6 5 . 6 5 . 6 5 . 6 5 . 0 5 . 0 5 . 0 5 . 0 5 . 0 5 . 0 5 . 8 0 . 8 0 . 8 W a t e r Q u a l i t y & R e s o u r c e 4. 3 4 . 0 3 . 2 2 . 5 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 1 . 8 2 . 0 2 . 0 3 . 0 3 . 0 3 . 0 3 . 0 3 . 8 0 . 8 0 . 8 W a s t e w a t e r C o l l e c t i o n 2. 3 1 . 5 1 . 7 1 . 7 2 . 5 3 . 3 2 . 5 3 . 2 3 . 2 3 . 2 3 . 2 3 . 2 3 . 2 2 . 4 2 . 4 2 . 5 2 . 5 2 . 5 2 . 5 2 . 7 0 . 2 0 . 2 W a s t e w a t e r T r e a t m e n t 3. 5 3 . 5 3 . 3 3 . 3 3 . 6 4 . 6 3 . 3 3 . 3 3 . 3 3 . 3 3 . 3 3 . 3 3 . 3 3 . 2 3 . 2 3 . 3 3 . 3 3 . 5 3 . 5 3 . 5 0 . 0 0 . 0 B i o s o l i d s 2. 5 2 . 5 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 3 2 . 2 2 . 2 2 . 3 2 . 3 2 . 5 2 . 5 2 . 5 0 . 0 0 . 0 S t o r m w a t e r 2. 3 1 . 5 1 . 7 3 . 3 3 . 8 4 . 5 3 . 4 2 . 8 2 . 8 3 . 8 3 . 8 3 . 8 3 . 8 3 . 3 3 . 3 3 . 1 3 . 1 3 . 5 3 . 5 3 . 6 0 . 0 0 . 1 To t a l P u b l i c W o r k s & U t i l i t i e s 3 3 . 1 3 0 . 6 2 4 . 0 2 5 . 6 2 8 . 8 2 9 . 7 2 9 . 6 2 8 . 5 2 8 . 8 3 0 . 5 3 2 . 5 3 2 . 0 3 0 . 1 2 6 . 0 2 5 . 1 2 7 . 9 2 8 . 0 3 0 . 4 3 0 . 2 3 3 . 0 2 . 8 2 . 6 TO T A L C I T Y F T E S 96 . 2 9 7 . 1 8 3 . 8 8 6 . 6 8 8 . 0 9 3 . 8 9 3 . 4 9 5 . 2 9 8 . 0 9 9 . 4 1 0 1 . 9 1 0 7 . 6 1 0 7 . 1 9 5 . 3 8 8 . 3 9 2 . 4 9 3 . 8 1 0 0 . 7 1 0 5 . 9 1 0 9 . 3 3 . 4 8 . 6 Pe r c e n t a g e C h a n g e 3.5% 8 . 8 % 19 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 Ma y o r / C o u n c i l 1. 0 0 . 0 0 . 4 0 . 4 0 . 4 0 . 4 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 Fi r e / E M S 11 . 0 1 0 . 0 4 . 2 3 . 8 3 . 8 5 . 0 4 . 2 3 . 8 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 EM S 8. 8 8 . 2 8 . 2 1 0 . 5 8 . 8 7 . 7 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 * D o e s n o t i n c l u d e l e a v e p a y o u t s Po s i t i o n s n o t c u r r e n t l y c o u n t e d as F T E S NO T I N C L U D E D I N F T E C O M P A R I S O N Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 41 of 172 City of Port Townsend 2018 Budget Page 42 of 172 Ordinance 3187 ORDINANCE NO.3187 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, \üASHINGTON, ADOPTING 2017 SUPPLEMENTAL BUDGET APPROPRIATIONS \ilHEREAS, the City Manager of the City of Port Townsend, Washington completed and filed an additional proposed supplemental budget for 20ll on Novemb er l, 2077; and WHEREAS, the City Council reviewed the supplemental budget and held a public hearing on Novemb er 6, 2017 and considered the matter fuither on November 1 3 , 2017 ; NOW' THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. The supplemental budget for the City of Port Townsend, Washington, for the fiscal year 2017, is adopted as set forth in the document entitled "City of Port Townsend Budget 2017 Supplemental Fund Summary", a copy of which is on file with the office of the City Clerk, and is incorporated into this Ordinance. The budget supplemental summary is attached as Exhibit A, making revenue and expenditure revisions. Section 2. This Ordinance shall take effect upon its passage, approval, and publication in the form and marìner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of the majority of the City Council plus one, at a special business meeting thereof, held this 13th day of November, 2017. Deborah S Mayor Attest:Approved as to legølform: 4.¿-ì^/-\ Joanna Sanders, MMC City Clerk Steven L. Gross City Attorney City of Port Townsend 2018 Budget Page 43 of 172 City of Port Townsend 2018 Budget Page 44 of 172 Ordinance 3187 Exhibit A Ci t y of Po r t To w n s e n d Pr o j e c t e d 20 1 7 Fu n d Su m m a r y - Su p p l e m e n t a l B u d g e t 20 1 6 20 1 7 20 1 7 20 1 7 20 1 7 20 1 7 20 1 7 2017 Proposed Supplemental ADDroor¡at¡on2017ProjectedEnd¡ng Fund Balance En d i n g F u n d Ad o p t e d Re v e n u e s Am e n d e d Re v e n u e s Ad o p t e d Am e n d e d Ex Þ e n s e s Ad o p t e d A m e n d e d Re v vs . E x p Ba l a n c ê Ex p e n s e s Re v vs . E x o GE N E R A L F U N D 1, 4 2 t , 3 9 1 8, 2 9 1 , 0 5 5 8 , 5 8 9 , 9 4 2 8, 2 8 3 , 4 9 5 8, 5 6 0 , 8 6 4 7, 5 6 0 2 9 , 0 7 8 277,369 1,450,469 Dr u g E n f o r c . / Co n t ¡ n g e n c y Str e e t L¡ b r a r y Re a l Es t a t e Ex c i s e T a x Lo d g ¡ n g T a x Fir e / EM S Aff o r d a b l e Ho u s ¡ n g Co m m u n i t y De v e l o p m e n t Bl o c k Gr a n t Co m m u n ¡ t y Se r v ¡ c e s TO T A L S P E C I A L R E V F U N D S 12 0 , 8 3 6 30 4 , 9 4 1 - 20 s , 6 9 6 r7 9 , 9 4 0 17 7 , 6 t t 15 , 8 8 7 40 , 7 8 0 14 8 , 1 5 9 t2 5 , 9 3 9 50 0 81 7 , 0 4 9 1, 0 5 1 , 2 s s 46 0 , 1 0 0 46 0 , 0 0 0 2,3 L 7 , 8 0 8 10 , 0 0 0 17 L) 1 1- , 8 0 6 , 2 4 2 50 , 5 0 0 86 7 , 5 4 7 L, 0 5 0 , 9 1 9 60 0 , 9 0 0 48 0 , 0 0 0 2, 3 t 7 , 7 6 6 10 , 2 0 0 20 , 2 1 9 L, 8 7 1 . 1 9 0 81 3 , 2 L 6 r, 0 4 L , 0 L 9 46 0 , 0 0 0 43 3 , 7 3 4 2, 3 L 7 , L 9 4 10 , 0 0 0 15 , 2 4 5 1, 8 0 3 , 9 7 2 86 s , 9 4 1 1,0 3 6 , 4 9 6 60 6 , 0 0 0 48 0 , 0 0 0 2, 3 t 7 , t 9 4 40 , 0 0 0 t5 , 2 4 5 1. 9 2 5 . 9 6 9 s0 0 3, 8 3 3 70 , 2 3 6 10 0 26 , 2 6 6 bf 4 50 , 5 0 0 L, 6 0 6 \4 , 4 2 3 (s , 1 0 0 ) 52,725 L46,000 46,266 30,000 121.997t7L,336 306,547 220,tlg r74,840 L77,6LL L6,459 r.0,980 L53,133 7L,160 1,302,183 2,1 7 6 2. 2 7 0 57 2 (2 9 , 8 0 0 ) 4, 9 7 4 15 4 . 7 7 9 \ t, 3 1 9 , 7 9 7 71 , 0 9 6 !,3 0 9 , O r 7 (1 1 6 7) ) \ 6, 9 4 0 , 3 7 5 7, 2 6 9 , 2 4 1 6 , 8 9 4 , 3 8 0 7, 2 8 6 , 8 4 5 45 , 9 9 5 (t 7 , 6 0 4 1 396,988 3,402,137 DE B T SE R V I C E FU N D 1, s 9 2 , 0 0 3 5, 0 0 0 , 1 8 6 1 , 5 8 5 , 5 6 5 4, 9 8 7 , 7 0 2 6, 4 3 8 12 , 4 8 4 83,580 Ge n e r a ¡ C a p ¡ t a l St r e e t Ca p ¡ t a l CA P I T A L PR O J E C T S FU N D S 2, 3 7 5 , 8 7 6 3, 9 6 9 , 4 0 9 3,4 2 s , 6 0 0 3, 8 2 4 , 5 U 3, 5 7 5 , 6 7 6 3. 9 6 9 . 2 U 1,, 7 0 2 , 8 8 1 , 3. 7 3 9 . 1 7 6 (1 , 1 9 9 , 8 0 0 ) t2 5 1,, 7 2 2 , 7 1 9 85 . 4 0 8 3,O3L,736 (31,313)3,000,423 1, 1 9 2 , 2 9 6 6, 3 4 5 , 2 8 5 7 , 2 5 0 , 1 8 4 7, 5 4 4 , 9 6 0 5, 4 4 2 , 0 5 7 (1 , 1 9 9 , 6 7 5 1 !, 8 O 8 , r 2 7 Sy s t e m D e v e l o p m e n t Wa t e r / Se w e r O p e r a t ¡ o n s Wa t e r / Se w e r Ca p ¡ t a l St o r m O p e r a t ¡ o n s St o r m Ca p ¡ t a l EN T E R P R I S E F U N D S 1, 9 9 7 , 0 6 6 3,0 1 8 , 0 7 0 L, 9 9 3 , 8 2 2 76 , 2 4 5 12 6 . 6 2 7 30 4 , 0 0 0 s,7 0 8 , 2 2 3 6, 6 8 2 , 0 1 3 s6 0 , 9 0 0 1, 3 4 4 , 0 5 0 39 1 , 7 6 0 5, 7 1 5 , 8 L 6 5, 4 2 3 , 4 3 9 56 0 , 9 0 0 60 0 , 6 0 0 5, 6 9 L , 0 9 8 4,5 t 5 , 0 4 9 48 7 , 0 9 8 1. 3 3 0 , 0 0 0 68 7 , 0 0 0 5, 7 s 3 , 3 s 3 7, 3 0 8 , 7 5 0 47 8 , 0 0 5 64 0 , 0 0 0 30 4 , 0 0 0 L7 , L 2 5 2, 1 6 6 , 9 æ 73 , 8 0 2 14 , 0 5 0 12 9 5 , 2 4 0 ] . l. 3 7 , s 3 7 1 (1 , 8 8 s , 3 1 1 ) 82 , 8 9 5 {3 9 . 4 0 0 ) 687,000 62,256 2,793,70r1,,701,,826 2,980,533 108,511 159,140 87,227 5,037,237 7, 2 1 1 , 8 3 0 14 , 5 9 9 , 1 8 6 12 , 6 9 2 , 5 ! 5 12 , 0 2 3 , 2 4 5 14 , 8 6 7 , t 0 8 2, 5 7 5 , 9 4 1 12 , 1 7 4 , 5 9 3 1 3,542,956 Pu b l i c W o r k s A d m i n Eq u ¡ p m e n t R e n t a l & Re p l a c e m e n t En g i n e e r ¡ n g Se r u ¡ c e s Un e m p l o y m e n t S e l f - l n s u r a n c e ** IN T E R N A L SE R V I C E FU N D S 40 , 2 9 5 79 0 , 9 2 1 - 17 5 , 3 8 2 24 . 7 3 2 50 5 , 9 7 9 88 7 , 5 r . 6 94 4 , 2 5 0 3. 0 s 0 49 0 , 4 r 9 87 7 , 8 6 3 1, 0 3 9 , 6 3 0 ?r ì c? q 50 5 , 8 8 0 92 0 , 5 3 3 88 7 , 9 2 L 3.0 0 0 53 0 , 1 1 9 98 2 , 6 0 0 1" , 0 0 3 , 0 8 8 ?ô ¿ n 99 (3 9 , 7 0 0 ) 11 0 4 , 7 3 7 ] , 36 , s 4 2 L8 5 24,239 62,067 Lts,'J.67 27.640595 (3 3 , 0 r . 7 ) 686,18s 2rt,924 24,9L7 923,620 s6 , 3 2 9 50 1, 0 3 1 , 3 3 0 2 , 3 4 0 , 7 9 5 2 , 4 3 8 , 7 3 7 2, 3 t 7 , 3 3 4 2, 3 4 6 , 4 4 7 23 , 4 6 t (t 0 7 , 7 t 0 l 229,!t3 Fir e m e n ' s Pe n s ¡ o n Ag e n c y / Re f u n d a b l e De p o s ¡ t s Me m o r ¡ a l Fu n d Go l f C o u r s e Fu n d FI D U C I A R Y F U N D S 22 6 , 2 9 7 65 , 5 4 2 2, 5 4 9 37 , 2 9 7 35 , 8 8 5 17 0 35 , 8 8 5 34 , 0 0 6 31 , 4 8 7 r, 8 7 9 4, 3 9 8 230,695 65,542 2,549 39,599 338,385 17 0 12 , 0 0 0 12 . 0 0 0 18 . 6 9 8 9.6 9 8 {6 . 6 9 8 ) 2. 3 0 2 33 1 , 6 8 5 48 , 0 5 5 47 , 8 8 s s 2 , 7 0 4 38 , 7 0 1 , 6 8 3 41 . 1 8 5 t¿ 6¿ l t ì 6, 7 0 0 GR A N D T O T A T t2 , 5 7 9 , 4 t 4 40 , 1 5 6 , 7 5 4 43 , 2 8 8 , 6 9 0 43 , 7 3 2 , 2 0 8 1, 4 5 5 , 0 7 ! (4 4 3 , 5 1 8 ) 7,844,563 12,135,896 ** IJ n e m p l o y m e n t ¡n v o ¡ c e op p r o x ¡ m o t e l y 51 4 0 h¡ g h e r th a n oil g ¡ n o l e s t ¡ m o t e . Su p p l e m e n t o l r e q u e s t o d a p t e d fo r th ¡ s fu n d on L1 . L 3 . L 7 Ru n D a t e : 1 ' 1 l 1 3 / 2 0 1 7 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 45 of 172 City of Port Townsend 2018 Budget Page 46 of 172 Cit y o f P o r t T o w n s e n d Up d a t e d o n 1 1 / 1 3 / 1 7 De s c r i p t i o n Fu n d De p a r t m e n t BA R S An n u a l E s t i m a t e 2 0 1 7 E x p e n s e In c r e a s e / (D e c r e a s e ) F u n d i n g S o u r c e Explanation Po l i c e e q u i p m e n t Ge n e r a l F u n d Po l i c e O p e r a t i o n s 0 1 0 - 0 5 4 - 5 9 4 - 2 1 0 - 6 4 on e t i m e 22 , 5 0 0 G e n e r a l F u n d R e s e r v e s Re a p p r o p r ia t e 2 0 1 6 f u n d s f o r r i f l e a c q u i sition Pr o f e s s i o n a l S e r v i c e s - D S D - C r i t i c a l A r e a s G e n e r a l F u n d DS D / P l a n n i n g 0 1 0 - 0 9 3 - 5 2 2 - 1 0 0 - 4 9 o n e t i m e 2 5 , 0 0 0 G F - C o u n c i l R e s e r v e La n d U s e P l a n n i n g ( A H B L) - C r i t i c a l A r e a s L a n d U s e P l a n n i n g ( B u dgeted only $5,000 in 2017 - carry over fr o m 2 0 1 6 a p p r o p r i a t i o n s ) Fu n d H o m e w a r d B o u n d s t a r t u p Aff o r d a b l e H o u s i n g Af f H o u s i n g 1 8 0 - 0 0 0 - 5 6 5 - 1 0 0 - 4 9 on e t i m e 30 , 0 0 0 A f f o r d a b l e H o u s i n g R e s e r v e s R e a pp r o p r i a t e 2 0 1 6 b u d g e t e d a p p r o p riation to fund Oly cap housing study Po l i c e e q u i p m e n t ER R Fle e t 5 0 0 - 6 0 0 - 5 9 4 - 4 8 0 - 6 4 on e t i m e 64 , 4 7 4 E R R R e s e r v e s Re a p p r o p r i a t e 2 0 1 6 b u d g e t e d f u n d s fo r v e h i c l e p u r chase delivered/invoiced in 2017 14 1 , 9 7 4 Lo a n t o H o m e w a r d B o u n d Ge n e r a l F u n d Un a s s i g n e d 0 1 0 - 0 9 3 - 5 8 5 - 0 0 0 - 0 0 on e t i m e 25 0 , 0 0 0 I n t e r f u n d L o a n f r o m T r a n s m i s s i o n L i n e Fu n d In t e r g o v e r n m e n t a l L o a n f r o m O G W S F u n d t o G e n e r a l F u n d f o r s h o r t - term financing of Homeward Bo u n d P r o j e c t L o a n ( d i s c u s s i o n / r e v i e w s l a t e d f o r 1 1 / 6 / 1 7 c o u n c i l meeting) Ho w a r d S t r e e t S u b a r e a p l a n Ge n e r a l F u n d DS D / P l a n n i n g 0 1 0 - 0 2 2 - 5 5 8 - 6 0 0 - 4 1 on e t i m e 11 6 , 8 7 5 On e t i m e e x p e n d i t u r e ; u s e r e s e r v e s Pl a n R e v i e w C o n s u l t i n g Ge n e r a l F u n d DS D / P l a n n i n g 0 1 0 - 0 2 2 - 5 5 8 - 6 0 0 - 4 1 on e t i m e 75 , 0 0 0 P e r m i t F e e R e v e n u e ; S t a f f V a c a n c ie s P l a n r e v i e w o u t s o u r c e d t o Sa f e b u i l t ; n o t b u d g e t e d in 2017; offset by staffing vacancies Tr a n s f e r t o C o m m S v s f o r P r o p a n e C o s t s G e n e r a l F u n d Mt n V i e w 1 9 9 - 1 1 0 - 5 7 5 - 5 0 0 - 3 2 o n g o i n g 7 1 , 5 0 0 Mo n i t o r i n g a c t u a l e x p e n s e s ; c o s t p e r g a l l o n i s c u r r e n t l y 2 x t h e 2016 cost per gallon (Mtn View Facility) Je f f e r s o n C o u n t y S h e r i f f - st a f f c o v e r a g e G e n e r a l F u n d Po l i c e O p e r a t i o n s 0 1 0 - 0 5 4 - 5 2 3 - 6 0 0 - 5 0 o n g o i n g ; l o w e r a m o u n t 5 0 , 0 0 0 20 1 6 & 2 0 1 7 t h r o u g h M a r c h - J C S h e r i f f O T c o v e r a g e Ec o n o m i c D e v e l o p m e n t p r o j e c t / H o w a r d S t r e e t st a f f s u p p o r t Ge n e r a l F u n d Ci t y M a n a g e r 0 1 0 - 0 1 2 - 5 1 3 - 1 0 0 - x x o n e t i m e 4 8 , 8 5 0 Te m p o r a r y e m p l o y e e s t o m a n a g e / s up p o r t H o w a r d S t r e e t s u b a r e a p l an Un e m p l o y m e n t E x p e n s e Ge n e r a l F u n d Va r i o u s x x x - x x x - 5 9 7 - x x x - x x Fin a nc e w i l l m o n i t o r 23 , 0 0 0 L& I C l a i m s ( P o l i c e , L i b r a r y & C o m m S v s F u n d ) B& O T a x R e f u n d s Ge n e r a l F u n d Fin a n c e 0 1 0 - 0 4 1 - 5 8 6 - 0 0 0 - 0 0 on e t i m e 15 , 4 0 0 B & O 2 0 1 7 t a x r e v e n u e s Re f u n d s o f o v e r p a y m e n t s ; i n c l u d e s t w o l a rge company filing errors No n L a b o r C o s t s Ge n e r a l F u n d Va r i o u s on e t i m e 11 , 0 9 0 Mis c e l l a n e o u s S u p p l i e s & O t h e r Em p l o y e e S e l f S e r v i c e S o f t w a r e Ge n e r a l F u n d HR 0 1 0 - 0 1 5 - 5 9 4 - 1 6 0 - 6 4 on e t i m e 10 , 1 0 0 Ad d i t i o n a l i m p l e m e n t a t i o n & t r a i n i n g c o s t s Fin a n c e S o f t w a r e M a i n t e n a n c e R e n e w a l G e n e r a l F u n d Fin a n c e 0 1 0 - 0 4 1 - 5 9 4 - x x x - 6 4 o n g o i n g 1 0 , 0 0 0 Sp r i n g b r o o k F i n a n c i a l S o f t w a r e Ma i n t e n a n c e R e n e w al - omitted in error in 2017 budget Vo t e r R e g i s t r a t i o n F e e s Ge n e r a l F u n d Ci t y C o u n c i l 0 1 0 - 0 1 1 - 5 1 1 - 6 0 0 - 4 9 on e t i m e (1 0 , 0 0 0 ) Lo w e r c o s t s f o r v o t e r r e g i s t r a t i o n c o s t s t h a n a p p r o p r i a t e d Et h i c s H e a r i n g s Ge n e r a l F u n d Ci t y C o u n c i l 0 1 0 - 0 1 1 - 5 1 1 - 6 0 0 - 4 1 on e t i m e (4 5 , 0 0 0 ) Et h i c s H e a r i n g s w e r e a p p r o p r i a t e d i n C i t y A t t o r n e y B u d g e t . T h i s is a duplicate appropriation. Un u s e d C o u n c i l R e s e r v e Ge n e r a l F u n d Co u n c i l R e s e r v e on e t i m e (6 2 , 0 0 0 ) Co u n c i l R e s e r v e i s e x p e c t e d t o b e u s e d t o f u n d $ 2 3 , Po l i c e V e h i c l e s Ge n e r a l F u n d Un a s s i g n e d on e t i m e (1 6 3 , 6 0 0 ) De f e r r e d P o l i c e V e h i c l e a p p r o p r i a t i o n Wa g e & B e n e f i t S a v i n g s Ge n e r a l F u n d Va r i o u s 0 1 0 - x x x - x x x - x x x - x x on e t i m e (1 7 1 , 3 4 6 ) Sta f f i n g V a c a n c i e s I n D S D / F i n a nc e & P o l i c e D e p t ; L e a v e s o f A b senses; Delayed Hiring for Police Admin 22 9 , 8 6 9 47 , 5 0 0 27 7 , 3 6 9 Ot h e r I m p r o v e m e n t s St r e e t O p e r F u n d Ma i n t e n a n c e 1 1 0 - 1 1 1 - 5 9 5 - 4 5 0 - 6 3 o n e t i m e 60 , 0 0 0 S t a t e G r a n t & E s t i m a t e d C o s t S a vin g s R e c e i v e d S t a t e G r a n t f o r Pa v e m e n t P a t c h & R e p a i r Wa g e & B e n e f i t S a v i n g s o n e t i m e (7 , 2 7 5 ) De l a y i n h i r i n g o p e n p o s i t i o n 52 , 7 2 5 Ca p i t a l T r a n s f e r - S t r e e t C I P F u n d RE E T F u n d Op e r a t i n g T r f r 1 3 5 - 0 0 0 - 5 9 7 - 3 0 5 - 0 2 o n e t i m e 14 6 , 0 0 0 A d d i t i o n a l R E E T R e v e n u e Tr a n s f e r t o S t r e e t C a p i t a l F u n d f o r H o ward Street Project 14 6 , 0 0 0 To t a l G e n e r a l F u n d R e - a p p r o p r i a t i o n s ( f r o m 2 0 1 7 B u d g e t e d A p p r o p ria t i o n s 20 1 7 S u p p l e m e n t a l B u d g e t A m e n d m e n t # 1 R e a p p r o p r i a t i o n s f r o m 2 0 1 6 B u d g e t To t a l R e a p p r o p r i a t i o n s Ge n e r a l F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s Ge n e r a l F u n d S u p p l e m e n t a l A p p r o p r i a t o n s To t a l G e n e r a l F u n d A d d i t i o n a l A p p r o p r i a t i o n s St r e e t O p e r a t i o n s F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l S t r e e t s O p e r a t i o n F u n d S u p p l e m e n t a l A p p r o p r i a t o n s Re a l E s t a t e E x c i s e T a x F un d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l R E E T F u n d S u p p l e m e n t a l A p p r o p r i a t o n s Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 47 of 172 Cit y o f P o r t T o w n s e n d Up d a t e d o n 1 1 / 1 3 / 1 7 De s c r i p t i o n Fu n d De p a r t m e n t BA R S An n u a l E s t i m a t e 2 0 1 7 E x p e n s e In c r e a s e / (D e c r e a s e ) F u n d i n g S o u r c e Explanation 20 1 7 S u p p l e m e n t a l B u d g e t A m e n d m e n t # 1 To u r i s m P r o m o t i o n Lo d g i n g T a x F u n d Op e r a t i o n s 1 5 0 - 1 5 0 - 5 5 7 - 3 0 0 - 4 9 o n e t i m e 26 , 2 6 6 A d d i t i o n a l L o d i n g T a x R e v e n u e S u p p o r t T o u r s i m E v e n t F a c i l i t y R en t a l F e e s & J o i n g M a r k e t i n g w i t h P o r t To u r i s m P r o m o t i o n Lo d g i n g T a x F u n d Op e r a t i o n s 1 5 0 - 1 5 0 - 5 5 7 - 3 0 0 - 4 9 o n e t i m e 10 , 0 0 0 A d d i t i o n a l L o d i n g T a x R e v e n u e H ot e l V a c a n c y S t u d y - A s r e c o m m e nd e d b y L o d g i n g T a x C o m m i t t e e To u r i s m P r o m o t i o n Lo d g i n g T a x F u n d Op e r a t i o n s 1 5 0 - 1 5 0 - 5 5 7 - 3 0 1 - 4 4 o n e t i m e 10 , 0 0 0 A d d i t i o n a l L o d i n g T a x R e v e n u e W o o d e n B o a t F e s t i v a l - P t H u d s o n F a c i l i t y R e n t a l s 46 , 2 6 6 Pr o p a n e F u e l Co m m u n i t y S e r v i c e s Mo u n t a i n V i e w 1 9 9 - 1 1 0 - 5 7 5 - 5 0 0 - 3 2 o n g o i n g 60 , 0 0 0 G e n e r a l F u n d In c r e a s e i n P r o p a n e F u e l C o s t ; c o s t p e r g a l l o n i s currently 2x the 2016 cost pe r gallon (Mtn View Facility) Bo i l e r R e p a i r s - T r a n s f e r f u n d s Co m m u n i t y S e r v i c e s Mo u n t a i n V i e w 1 9 9 - 0 0 0 - 5 9 7 - 0 0 0 - 0 0 o n e t i m e 50 , 0 0 0 C o m m u n i t y S v s F u n d B a l R e s e r v e s R e p l e n i s h C o n t i n g e n c y F u n d f o r 2 0 1 6 r e v e n u e r e c e i v e d - b o i l e r r e p a i r s No n L a b o r E x p e n s e s Co m m u n i t y S e r v i c e s Fa c i l i t i e s 1 9 9 - 09 1 - 5 1 8 - 3 0 0 - 3 1 / 3 5 o n e t i m e 11 , 9 9 7 G e n e r a l F u n d Ad d i t i o n a l S m a l l E q u i p m e n t f o r F a c i l i t i e s ( R e p l a c e m e n t T a b l e & Chairs for Pope Marin e; Carpet Cleaning Ma c h i n e ; M i s c . S m a l l T o o l s ; C o m p u t e r ; P a r k s D e p o s i t s 12 1 , 9 9 7 GO 2 0 0 8 B o n d R e f i n a n c e I s s u e C o s t s GO D e b t S e r v i c e F u n d N/ A 2 0 0 - 0 0 0 - 5 9 2 - 1 8 0 - 8 1 / 8 2 o n e t i m e 10 3 , 2 8 5 G O B o n d R e f i n a n c e Bo n d I s s u a n c e C o s t s f o r 2 0 0 8 B on d R e f i n a n c e GO B o n d L o n g T e r m I n t e r e s t GO D e b t S e r v i c e F u n d N/ A 2 0 0 - 0 0 0 - 5 9 2 - 1 9 3 - 8 3 o n g o i n g (2 4 9 , 5 2 4 ) V a r i o u s F u n d T r a n s f e r s In t e r e s t A d j u s t m e n t s o n L o n g T er m B o n d s d u e t o 2 0 0 8 G O B o n d R e finance & Recognition of Bond Pr e m i u m GO B o n d T r a n s f e r s GO D e b t S e r v i c e F u n d N/ A 2 0 0 - 0 0 0 - 5 9 7 - 0 0 0 - 0 0 o n g o i n g 3,5 4 8 , 3 7 7 G O B o n d R e f i n a n c e Tr a n s f e r B o n d Pr o c e e d s R e c e i v e d t o C a p i t a l F unds 3,4 0 2 , 1 3 7 Ci t y L a k e L a n d P u r c h a s e W a t e r / S e w e r O p e r Wa t e r D i s t r i b u t i o n 4 1 1 - 4 0 3 - 5 9 4 - 3 4 0 - 6 3 o n e t i m e ( 1 0 0 , 0 0 0 ) W a t e r / S e w e r O pe r a t i n g R e v e n u e D e l a y i n C o m p l e t i o n o f R e a l E s ta t e P u r c h a s e a t C i t y L a k e - M o v e d t o 2 0 1 8 B u d g e t Wa t e r / S e w e r C a p i t a l F u n d i n g Sy s t e m s D e v e l o p m e n t N/ A 1 9 5 - 4 1 5 - 5 9 7 - 3 4 0 / 3 5 0 - 5 5 2 0 1 7 / 2 0 1 8 68 7 , 0 0 0 A d d i t i o n a l S D C R e v e n u e & S D C F u n d Re s e r v e s Tr a n s f e r t o W a t e r / S e w e r C a p i t a l F u n d f o r C i t y m a t c h o f L T 2 & 5MG Reservoir Projects Wa t e r / S e w e r P r o j e c t s - r e a p p r o p r i a t i o n C a p i t a l Wt r C a p i t a l 4 1 5 - x x x - x x x - xx x - x x 2 0 1 7 / 2 0 1 8 2 , 0 1 5 , 7 5 7 P W T F & D W S R F L o a n s / S D C R e s e r v e s / OG W S F u n d R e s e r v e s Wa t e r p r o j e c t a p p r o p ria t i o n s f r o m 2 0 1 6 t h a t will be made in 201 7 In t e r f u n d L o a n D i s b u r s e m e n t OG W S F u n d N/ A 4 1 7 - 8 8 8 - 5 8 1 - 1 0 0 - 0 0 on e t i m e 25 0 , 0 0 0 F u t u r e B o n d R e f i n a n c e In t e r g o v e r n m e n t a l L o a n f r o m O G W S F u n d t o G e n e r a l F u n d f o r s h o r t - term financing of Homeward Bo u n d P r o j e c t L o a n ( d i s c u s s i o n / r e v i e w s l a t e d f o r 1 1 / 6 / 1 7 c o u n c i l meeting) No n L a b o r Va r i o u s N/ A on e t i m e 20 0 Va r o u s m i n o r e x p e n d i t u r e s 2,8 5 2 , 9 5 7 Ci v i l E n g i n e e r I I I En g i n e e r i n g N/ A 5 5 5 - 4 0 2 - 5 3 2 - 2 0 0 - x x 10 1 , 6 8 0 46 , 6 0 3 C a p i t a l P r o j e c t s Pr o j e c t e n g i n e e r f o r w a t e r / s e w e r p r o j e c t s ; r e c r u i t w i t h p o s s i b l e succession plan opportunitites; Hire Da t e 7 / 1 0 / 1 7 Pr o j e c t M a n a g e r - W a t e r P r o j e c t E n g i n e e r i n g N/ A 5 5 5 - 4 0 2 - 5 3 2 - 2 0 0 - x x o n e t i m e 6 6 , 1 5 7 W a t e r C a p i t a l In c r e a s e p r o j e c t m a n a g e r f r o m . 2 5 F T E t o 1 . 0 0 F TE - extended pr oject close out; chargeable to the Water Pr o j e c t ( s e e r e a p p r o p r i a t i o n b e l o w ) PW D i r e c t o r s a l a r i e s & b e n e f i t s PW A d m i n i s t r a t i o n PW A d m i n 1 4 0 - 4 0 1 - 5 3 8 - 1 1 0 - x x on g o i n g 41 , 7 2 6 P W F u n d R e s e r v e s 10 m o n t h s o f s a l a r y a d j u s t m e n t b a se d o n n e w w a g e s c a l e a d o p t e d on 2/06/2017 & Overlap of new PW Di r e c t o r h i r e d 9 / 1 / 1 7 . Re c r u i t i n g c o s t s PW A d m i n i s t r a t i o n PW A d m i n 1 4 0 - 4 0 1 - 5 3 8 - 1 1 0 - 4 3 on e t i m e 9, 0 0 0 P W F u n d R e s e r v e s Re c r u i t m e n t o f P W D i r e c t o r - T r a v e l S t i p e n d s & R e l o c a t i o n C o s t s PW P r o f e s s i o n a l S e r v i c e s PW A d m i n i s t r a t i o n PW A d m i n 1 4 0 - 4 0 1 - 5 3 8 - 1 1 0 - 4 1 on e t i m e (2 6 , 4 8 7 ) Pr o f e s s i o n a l S e r v i c e s s a v i n g s . A e r i a l M a p p i n g P h o t o s l e s s t h a n expected. Un e m p l o y m e n t C l a i m s Un e m p l o y m e n t S e l f In s u r a n c e F u n d Un a s s i g n e d 5 9 5 - 0 0 0 - 5 1 8 - 0 0 0 - 2 5 F i n a n c e w i l l m o n i t o r c l a i m ac t i v i t y f o r 2 0 1 7 / 2 0 1 8 pr o j e c t i o n s 27 , 6 4 0 I n t e r n a l S e r v i c e F u n d f u n d e d b y tr a n s f e r s f r o m o t h e r f u n d s Ac t u a l c l a i m s f i l e d ( P o l i c e , L i b r a r y , C o m m S v s , W t r / S w r , & S t o r m Funds) 16 4 , 6 3 9 64 , 4 7 4 22 9 , 1 1 3 7,1 5 8 , 5 6 4 TO T A L A L L F U N D S - S U P P L E ME N T A L A P P R O P R I A T I O N S Co m m u n i t y S e r v i c e s F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l C o m m u n i t y S v s . F u n d S u p p l e m e n t a l A p p r o p r i a t o n s GO B O N D D e b t S v s F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l G O B o n d D e b t S e r v i c e F u n d S u p p l e m e n t a l A p p r o p r i a t o n s I n t e r n a l S e r v i c e F u n d s - S u p p l e m e n t a l A p p r o p r i a t o n s To t a l I n t e r n a l S e r v i c e F u n d s A p p r o p r i a t i o n s To t a l G e n e r a l F u n d R e - a p p r o p r i a t i o n s ( f r o m 2 0 1 7 B u d g e t e d A p p r o p ria t i o n s In t e r n a l S e r v i c e s F u n d R e a p p r o p r i a t i o n s E n t e r p r i s e F u n d s - S u p p l e m e n t a l A p p r o p r i a t o n s To t a l E n t e r p r i s e F u n d S u p p l e m e n t a l A p p r o p r i a t o n s Lo d g i n g T a x F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l L o d g i n g T a x F u n d S u p p l e m e n t a l A p p r o p r i a t o n s Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 48 of 172 ` 2017 2018 2018 2018 2018 Estimated Proposed Proposed Proposed Proposed Balance Revenues Expenses Rev vs. Exp Balance GENERAL FUND 1,450,469        8,648,366        8,608,299        40,067              1,490,536      Drug Enforc. / Contingency 171,336                  500                          ‐                           500                          171,836               Street 306,547                  837,942                  769,082                  68,860                     375,407               Library 220,119                  1,077,601               1,093,379               (15,778)                   204,341               Real Estate Excise Tax 174,840                  510,100                  545,000                  (34,900)                   139,940               Lodging Tax 177,611                  480,000                  479,838                  162                          177,773               Fire / EMS 16,459                     2,385,876               2,385,276               600                          17,059                  Affordable Housing 10,980                     10,000                     10,000                     ‐                           10,980                  Community Development Block Grant 153,133                  13,623                     15,000                     (1,377)                      151,756               Community Services 71,160                    2,013,448              2,012,560              888                         72,048                  TOTAL SPECIAL REV FUNDS 1,302,183         7,329,090         7,310,135         18,955              1,321,138      DEBT SERVICE FUND 83,580             1,675,155        1,645,656        29,499             113,079          General Capital 3,031,736              1,740,341              4,698,154              (2,957,813)             73,923                  Street Capital (31,313)                  3,062,602              3,017,489              45,113                    13,800                  CAPITAL PROJECTS FUNDS 3,000,423        4,802,943        7,715,643        (2,912,700)       87,723            System Development 1,701,826              315,290                 1,080,000              (764,710)                937,116               Water / Sewer Operations 2,980,533              6,116,957              7,881,874              (1,764,917)             1,215,616            Water / Sewer Capital 108,511                 8,204,054              6,517,915              1,686,139              1,794,650            Storm Operations 159,140                 578,018                 620,137                 (42,119)                  117,021               Storm Capital 87,227                    1,070,600              1,000,000              70,600                    157,827               ENTERPRISE FUNDS 5,037,237        16,284,919      17,099,927      (815,008)          4,222,229      Public Works Admin 595                         584,573                 584,272                 301                         896                       Equipment Rental & Replacement 686,185                 1,370,391              1,465,655              (95,264)                  590,921               Engineering Services 211,924                 1,009,500              1,042,564              (33,064)                  178,860               Unemployment Self‐Insurance 24,852                    19,620                    19,500                    120                         24,972                  INTERNAL SERVICE FUNDS 923,555            2,984,084         3,111,991         (127,907)           795,648          Firemen's Pension 230,695                 34,735                    27,140                    7,595                      238,290               Agency / Refundable Deposits 65,542                    ‐                          ‐                          ‐                          65,542                  Memorial Fund 2,549                      ‐                          ‐                          ‐                          2,549                    Golf Course Fund 39,599                    12,000                    21,419                    (9,419)                     30,180                  FIDUCIARY FUNDS 338,385 46,735 48,559 (1,824) 336,561 GRAND TOTAL 12,135,831      41,771,292      45,540,210      (3,768,918)       8,366,913      City of Port Townsend City Manager Proposed 2018 Fund Summary Run Date: 10/31/2017City of Port Townsend 2018 Budget Page 49 of 172 City of Port Townsend 2018 Budget Page 50 of 172 City of Port Townsend 2018 Budget Page 51 of 172 City of Port Townsend 2018 Budget Page 52 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 53 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Pa g e 54 of 17 2 2018 BUDGET SUMMARIES BY FUND TABLE OF CONTENTS PAGE FUND 57 GENERAL FUND 58 DRUG ENFORCEMENT / CONTINGENCY FUND 59 STREET FUND 60 LIBRARY FUND 61 REAL ESTATE EXCISE TAX FUND 62 PUBLIC WORKS ADMINISTRATION 63 LODGING TAX FUND 64 FIRE/EMS FUND 65 AFFORDABLE HOUSING FUND 66 COMMUNITY DEVELOPMENT BLOCK GRANTS 67 SYSTEM DEVELOPMENT CHARGES 68 COMMUNITY SERVICES FUND 69 GENERAL OBLIGATION DEBT SERVICE 70 GENERAL CAPITAL PROJECTS 71 STREET CAPITAL PROJECTS 72 WATER/SEWER CAPITAL 73 STORM WATER CAPITAL FUND 74 WATER/SEWER OPERATIONS 75 STORM WATER OPERATIONS 76 EQUIPMENT RENTAL & REPLACEMENT FUND 77 ENGINEERING FUND 78 UNEMPLOYMENT RESERVE FUND 79 FIREMEN'S PENSION FUND 80 GOLF COURSE FUND City of Port Townsend 2018 Budget Page 55 of 172 City of Port Townsend 2018 Budget Page 56 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 722,067 976,378 1,421,391 1,421,391 1,450,469 Revenues Taxes 5,408,987 6,086,252 6,090,528 6,127,285 6,238,203 2.4% Licenses & Permits 324,566 441,525 368,183 383,250 368,250 0.0% Intergovernmental Services 244,868 250,863 249,423 234,820 228,425 -8.4% Charges for Goods & Services 1,407,829 1,295,097 1,455,521 1,467,328 1,679,988 15.4% Fines & Penalties 63,785 57,971 59,500 47,780 50,300 -15.5% Miscellaneous Revenue 44,006 44,082 64,400 63,034 69,200 7.5% Other Financing Sources 29,224 5,830 3,500 256,445 4,000 Operating Transfers In 6,713 62,075 - 10,000 - Total Revenue 7,529,978 8,243,695 8,291,055 8,589,942 8,638,366 4.2% Expenditures Salaries & Wages 2,736,104 3,035,028 3,124,966 3,100,111 3,274,005 4.8% Personnel Benefits 1,099,291 1,258,135 1,407,305 1,316,207 1,479,414 5.1% Supplies 40,457 48,688 54,900 60,801 67,949 23.8% Insurance 272,662 308,304 347,153 357,000 401,755 15.7% Professional Services 101,814 159,863 200,935 347,150 167,241 -16.8% Communications 56,811 55,592 62,592 58,996 62,452 -0.2% Advertising 39,678 32,509 36,050 43,890 43,250 20.0% Operating Rents & Leases 55,104 51,117 53,598 52,798 52,532 -2.0% Intergovernemental Services 769,011 723,157 771,400 824,065 813,191 5.4% Machinery & Equipment 70,163 70,736 212,988 99,888 64,130 -69.9% Repair & Maintenance 52,986 28,118 22,840 26,990 26,674 16.8% Equipment Rental 267,389 267,319 303,930 303,930 303,930 0.0% Training/Memberships & Travel 34,540 35,481 108,470 104,420 125,404 15.6% Miscellaneous 159,548 59,075 130,085 331,555 131,760 1.3% Transfers Out 1,520,109 1,665,563 1,446,283 1,533,063 1,596,170 10.4% Total Expenditure 7,275,667 7,798,683 8,283,495 8,560,864 8,609,857 3.9% Net Change in Fund Balance 254,311 445,013 7,560 29,078 28,509 277.1% Ending Fund Balance 976,378 1,421,391 1,428,951 1,450,469 1,478,978 Fund Bal. 8-15 % of Revenue 13.0%17.2%17.2%16.9%17.1% Meets Policy General Fund - Expenditures by Department Mayor & Council 138,173 123,773 228,328 170,909 138,179 -39.5% City Manager 301,340 306,620 308,113 363,849 324,616 5.4% City Attorney 515,532 526,552 556,853 551,649 603,369 8.4% Human Resources 267,586 321,630 363,215 374,511 418,159 15.1% Planning & Development Services 748,923 907,400 973,432 1,104,152 1,026,670 5.5% Finance Department 311,606 317,984 327,509 308,946 343,652 4.9% Police Administration 564,060 445,788 550,588 544,351 638,241 15.9% Police Operations 2,210,470 2,520,387 2,560,296 2,608,511 2,666,362 4.1% Police Training 32,236 33,344 30,500 60,650 30,000 -1.6% City Clerk 251,272 262,589 270,092 268,225 279,670 3.5% Contracts & Intergovernmental 339,006 371,385 645,553 690,665 534,901 -17.1% PEG Access 38,813 25,671 23,753 27,683 23,753 0.0% Transfers Out 1,556,650 1,635,559 1,445,263 1,516,763 1,582,285 9.5% Total Expenditures 7,275,667 7,798,682 8,283,495 8,590,864 8,609,857 3.9% City of Port Townsend GENERAL FUND BUDGET SUMMARY General Fund City of Port Townsend 2018 Budget Page 57 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 146,279 150,434 120,836 120,836 171,336 Revenues Taxes 4,000 - - - - Miscellaneous Revenue 155 402 500 500 500 0.0% Operating Transfers In - 20,000 - 50,000 - Total Revenue 4,155 20,402 500 50,500 500 0.0% Expenditures Miscellaneous Transfers Out - 50,000 - - - Total Expenditure - 50,000 - - - Net Change in Fund Balance 4,155 (29,598) 500 50,500 500 0.0% Ending Fund Balance 150,434 120,836 121,336 171,336 171,836 Fund Balance 2% of GF Rev 2.0%1.5%1.5%2.0%2.0% Meets Policy City of Port Townsend DRUG ENFORCEMENT / CONTINGENCY FUND BUDGET SUMMARY Contingency Fund City of Port Townsend 2018 Budget Page 58 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 111,334 195,688 304,941 304,941 306,547 Revenues Taxes 557,531 605,615 598,293 598,293 606,507 1.4% Licenses & Permits 462 1,312 500 500 500 0.0% Intergovernmental Services 197,128 212,085 207,626 249,191 219,735 5.8% Charges for Goods & Services 5,300 5,000 10,000 13,326 10,000 0.0% Miscellaneous Revenue 2,229 2,188 630 2,897 1,200 90.5% Other Financing Sources - 6,500 - 3,340 - Operating Transfers In - - - - - Total Revenue 762,650 832,700 817,049 867,547 837,942 2.6% Expenditures Salaries & Wages 122,627 129,709 135,267 130,311 138,473 2.4% Personnel Benefits 58,967 58,333 67,602 64,981 68,271 1.0% Supplies 26,129 28,902 51,000 51,030 52,000 2.0% Professional Services 3,137 15,136 15,000 13,500 17,000 13.3% Communications 599 598 600 600 600 0.0% Advertising - - - - - Operating Rents & Leases - 1,235 - - - Intergovernemental Services - - 2,000 - - -100.0% Machinery & Equipment - 19,893 - - - Other Improvements - - 30,000 90,000 50,000 66.7% Repair & Maintenance 45,111 52,849 88,500 85,000 60,000 -32.2% Equipment Rental 41,102 50,142 45,718 45,718 45,718 0.0% Utilities 103,154 105,959 115,000 115,000 115,000 0.0% Training/Memberships & Travel - - 500 2,000 2,500 400.0% Overhead Allocation 91,375 73,564 86,629 85,523 86,646 0.0% Miscellaneous 1,225 2,174 500 6,178 4,000 700.0% Transfers Out 184,870 184,953 174,900 176,100 178,874 2.3% Total Expenditure 678,296 723,447 813,216 865,941 819,082 0.7% Net Change in Fund Balance 84,354 109,253 3,833 1,606 18,860 392.0% Ending Fund Balance 195,688 304,941 308,774 306,547 325,407 Fund Bal. 2-3 % of Expenditures 28.9%42.2%38.0%35.4%39.7% Meets Policy STREET FUND BUDGET SUMMARY Street Fund City of Port Townsend City of Port Townsend 2018 Budget Page 59 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 161,323 151,853 205,696 205,696 220,119 Revenues Taxes 1,007,315 1,021,077 1,042,228 1,042,228 1,076,951 3.3% Licenses & Permits - - - - - Intergovernmental Services 7,336 1,394 - - - Charges for Goods & Services - - - Fines & Penalties 10,630 9,339 4,500 4,500 - -100.0% Miscellaneous Revenue 4,774 4,586 4,527 3,650 650 -85.6% Other Financing Sources 23,552 32,831 - 541 - Operating Transfers In - - - - - Total Revenue 1,053,607 1,069,227 1,051,255 1,050,919 1,077,601 2.5% Expenditures Salaries & Wages 419,759 416,800 427,459 415,000 446,279 4.4% Personnel Benefits 154,731 167,734 180,446 179,387 192,681 6.8% Supplies 18,188 19,883 13,500 13,500 12,000 -11.1% Insurance - - - - - Professional Services 9,890 19,962 28,800 24,800 29,200 1.4% Communications 33,901 14,429 14,640 14,640 14,640 0.0% Advertising 726 262 1,000 1,000 500 -50.0% Operating Rents & Leases 3,285 2,934 2,600 1,600 1,560 -40.0% Intergovernemental Services - - - - - Machinery & Equipment 103,928 74,814 71,000 71,550 76,000 7.0% Repair & Maintenance 3,113 19,229 - - - Equipment Rental 58,979 58,979 63,806 63,806 63,806 0.0% Utilities 22,354 21,506 23,300 27,000 24,600 5.6% Training/Memberships & Travel 5,030 3,235 13,500 14,205 12,500 -7.4% Miscellaneous 10,685 10,328 3,000 7,000 3,000 0.0% Overhead Allocation 218,508 185,189 197,968 197,968 214,972 8.6% Transfers Out - 100 - 5,040 1,641 Total Expenditure 1,063,077 1,015,384 1,041,019 1,036,496 1,093,379 5.0% Net Change in Fund Balance (9,470) 53,843 10,236 14,423 (15,778) -254.1% Ending Fund Balance 151,853 205,696 215,932 220,119 204,341 Fund Balance 5-8% of Tax Rev.15.1%20.1%20.7%21.1%19.0% Meets Policy LIBRARY FUND BUDGET SUMMARY Library Fund City of Port Townsend City of Port Townsend 2018 Budget Page 60 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 40,408 68,310 179,940 179,940 174,840 Revenues Taxes 537,695 590,244 460,000 600,000 510,000 10.9% Miscellaneous Revenue 207 386 100 900 100 0.0% Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenue 537,902 590,630 460,100 600,900 510,100 10.9% Expenditures Miscellaneous - - - - - Transfers Out 510,000 479,000 460,000 606,000 545,000 18.5% Total Expenditure 510,000 479,000 460,000 606,000 545,000 18.5% Net Change in Fund Balance 27,902 111,630 100 (5,100) (34,900) -35000.0% Ending Fund Balance 68,310 179,940 180,040 174,840 139,940 Sufficient to Meet Obligations 12.7%30.5%39.1%29.1%27.4% Meets Policy REAL ESTATE EXCISE TAX FUND BUDGET SUMMARY REET City of Port Townsend City of Port Townsend 2018 Budget Page 61 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 19,856 37,487 40,295 40,295 595 Revenues Charges for Goods & Services 322,138 356,510 505,879 490,119 584,273 15.5% Fines & Penalties - - - - - Miscellaneous Revenue 1,009 118 100 300 300 200.0% Operating Transfers In - - - - - Total Revenue 323,147 356,628 505,979 490,419 584,573 15.5% Expenditures Salaries & Wages 173,575 187,731 243,573 279,280 317,199 30.2% Personnel Benefits 65,379 71,473 104,107 110,126 121,243 16.5% Supplies 2,051 2,553 4,000 4,000 5,000 25.0% Professional Services - 12,717 56,000 29,013 6,000 -89.3% Communications 2,184 1,961 4,000 4,000 2,000 -50.0% Advertising 163 - 1,000 - 1,000 0.0% Operating Rents & Leases 3,510 3,281 3,688 3,688 3,600 -2.4% Intergovernemental Services - 55,942 - - -100.0% Machinery & Equipment - - 500 - - -100.0% Repair & Maintenance - - 500 500 500 0.0% Equipment Rental 11,330 11,330 23,770 23,770 23,770 0.0% Training/Memberships & Travel 870 746 8,000 18,000 8,000 0.0% Miscellaneous 1,165 1,429 800 1,800 2,550 218.8% Overhead Allocation 45,289 60,599 55,942 58,810 Transfers Out - - - - 34,600 Total Expenditure 305,516 353,820 505,880 530,119 584,272 15.5% - Net Change in Fund Balance 17,631 2,808 99 (39,700) 301 204.0% Ending Fund Balance 37,487 40,295 40,394 595 896 Fund Bal. 2-3% of Expenditures 12.3%11.4%8.0%0.1%0.2% Doesn’t Meet Policy City of Port Townsend PUBLIC WORKS ADMINISTRATION BUDGET SUMMARY PW Admin (Internal Service Fund) City of Port Townsend 2018 Budget Page 62 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 120,843 157,097 177,611 177,611 177,611 Revenues Taxes 443,859 474,938 460,000 480,000 480,000 4.3% Miscellaneous Revenue - - - - - Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenue 443,859 474,938 460,000 480,000 480,000 4.3% Expenditures Professional Services 210,013 226,824 270,873 273,150 273,500 1.0% Advertising 37,500 55,171 50,000 60,000 45,000 -10.0% Machinery & Equipment 6,922 - - - - Other Improvements 25,427 170 - - - Miscellaneous - 3,362 3,500 37,489 23,500 571.4% Overhead Allocation 21,030 18,897 9,361 9,361 12,838 37.1% Transfers Out 106,713 150,000 100,000 100,000 125,000 25.0% Total Expenditure 407,605 454,424 433,734 480,000 479,838 10.6% Net Change in Fund Balance 36,254 20,514 26,266 - 162 -99.4% Ending Fund Balance 157,097 177,611 203,877 177,611 177,773 Sufficient to Meet Obligations 35.4%37.4%44.3%37.0%37.0% Meets Policy LODGING TAX FUND BUDGET SUMMARY Lodging Tax City of Port Townsend City of Port Townsend 2018 Budget Page 63 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 25,568 32,713 15,887 15,887 16,459 Revenues Taxes 2,389,071 2,399,034 2,317,194 2,317,194 2,385,276 2.9% Miscellaneous Revenue 314 546 614 572 600 -2.3% Operating Transfers In - - - - - Total Revenue 2,389,385 2,399,580 2,317,808 2,317,766 2,385,876 2.9% Expenditures Intergovernemental Services 2,382,240 2,411,912 2,317,194 2,317,194 2,385,276 2.9% Miscellaneous - - - - - Transfers Out - 4,494 - - - Total Expenditure 2,382,240 2,416,406 2,317,194 2,317,194 2,385,276 2.9% Net Change in Fund Balance 7,145 (16,826) 614 572 600 -2.3% Ending Fund Balance 32,713 15,887 16,501 16,459 17,059 Sufficient to Meet Obligations 1.4%0.7%0.7%0.7%0.7% Meets Policy FIRE/EMS FUND BUDGET SUMMARY Fire/EMS City of Port Townsend City of Port Townsend 2018 Budget Page 64 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 30,627 40,663 40,780 40,780 10,980 Revenues Taxes 10,000 10,000 10,000 10,000 10,000 0.0% Miscellaneous Revenue 36 118 - 200 - Operating Transfers In - - - - - Total Revenue 10,036 10,118 10,000 10,200 10,000 0.0% Expenditures Miscellaneous - - - 30,000 10,000 Transfers Out - 10,000 10,000 10,000 - -100.0% Total Expenditure - 10,000 10,000 40,000 10,000 0.0% Net Change in Fund Balance 10,036 118 - (29,800) - Ending Fund Balance 40,663 40,780 40,780 10,980 10,980 Sufficient to Meet Obligations 405.2% 403.1% 407.8% 107.7% 109.8% Meets Policy AFFORDABLE HOUSING FUND BUDGET SUMMARY Affordable Housing City of Port Townsend City of Port Townsend 2018 Budget Page 65 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 152,445 141,751 148,159 148,159 153,133 Revenues Intergovernmental Services 39,507 16,974 17,061 19,619 13,023 -23.7% Miscellaneous Revenue 160 559 360 600 600 66.7% Operating Transfers In - - - - - Total Revenue 39,667 17,533 17,421 20,219 13,623 -21.8% Expenditures Miscellaneous 50,361 11,125 15,245 15,245 15,000 -1.6% Transfers Out - - - - - Total Expenditure 50,361 11,125 15,245 15,245 15,000 -1.6% Net Change in Fund Balance (10,694) 6,408 2,176 4,974 (1,377) -163.3% Ending Fund Balance 141,751 148,159 150,335 153,133 151,756 Sufficient to Meet Obligations 357.4% 845.0% 863.0% 757.4% 1114.0% Meets Policy COMMUNITY DEVELOPMENT BLOCK GRANTS BUDGET SUMMARY CDBG City of Port Townsend City of Port Townsend 2018 Budget Page 66 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 1,239,539 1,450,404 1,997,066 1,997,066 1,701,826 Revenues Charges for Goods & Services 325,608 606,037 300,000 384,760 311,290 3.8% Miscellaneous Revenue 1,450 4,483 4,000 7,000 4,000 0.0% Operating Transfers In - - - - - Total Revenue 327,058 610,520 304,000 391,760 315,290 3.7% Expenditures Miscellaneous - - - - - Overhead Allocation - - - - - Transfers Out 116,193 63,859 - 687,000 1,080,000 Total Expenditure 116,193 63,859 - 687,000 1,080,000 Net Change in Fund Balance 210,865 546,661 304,000 (295,240) (764,710) -351.5% Ending Fund Balance 1,450,404 1,997,066 2,301,066 1,701,826 937,116 Sufficient to Meet Obligations 443.5% 327.1% 756.9% 434.4% 297.2% Meets Policy SYSTEM DEVELOPMENT CHARGES BUDGET SUMMARY SDCs City of Port Townsend City of Port Townsend 2018 Budget Page 67 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 50,407 105,699 125,939 125,939 71,160 Revenues Taxes 461,450 559,035 684,884 684,884 690,648 0.8% Charges for Goods & Services 124,051 140,575 202,400 181,484 212,400 4.9% Fines & Penalties Miscellaneous Revenue 44,409 78,388 58,958 73,282 76,400 29.6% Other Financing Sources Operating Transfers In 805,000 925,100 860,000 931,540 1,034,000 20.2% Total Revenue 1,434,909 1,703,098 1,806,242 1,871,190 2,013,448 11.5% Expenditures Salaries & Wages 483,934 576,840 667,877 678,137 699,136 4.7% Personnel Benefits 215,771 284,026 359,847 336,561 356,354 -1.0% Supplies 136,401 163,295 183,250 257,340 291,040 58.8% Insurance - - - - - Professional Services 39,954 52,015 63,060 63,060 68,650 8.9% Communications 11,193 12,456 12,390 12,540 15,140 22.2% Advertising 175 2,280 1,500 1,500 3,135 109.0% Operating Rents & Leases 41,769 43,881 42,472 42,840 43,138 1.6% Intergovernemental Services 69,131 - - - - Machinery & Equipment 26,088 8,500 10,466 7,900 -7.1% Other Improvements 41,591 2,426 Repair & Maintenance 36,935 90,478 92,450 86,450 69,870 -24.4% Equipment Rental 45,728 54,368 51,838 51,838 51,838 0.0% Utilities 136,197 141,198 138,500 138,500 149,000 7.6% Training/Memberships & Travel 452 3,343 14,483 17,741 14,560 0.5% Miscellaneous 18,394 28,204 5,700 25,465 17,782 212.0% Overhead Allocation 143,585 110,188 148,105 148,105 225,017 51.9% Transfers Out - 52,608 14,000 53,000 - -100.0% Total Expenditure 1,379,617 1,682,859 1,803,972 1,925,969 2,012,560 11.6% Net Change in Fund Balance 55,292 20,240 2,270 (54,779) 888 -60.9% Ending Fund Balance 105,699 125,939 128,209 71,160 72,048 Fund Bal. 2-3 % of Expenditures 7.7%7.5%7.1%3.7%3.6% Meets Policy Community Services Fund - Expenditures by Department GF Overhead 143,585 110,188 148,105 148,105 225,017 51.9% Arts Commission 19,384 19,806 22,000 22,000 24,600 11.8% Non-profit contributions 14,313 - - - - Jefferson Co Parks & Rec 69,131 - - - - City Facilities 336,314 400,034 479,593 489,150 499,889 4.2% Mountain View Facilities 195,793 312,675 249,692 307,276 344,438 37.9% Parks Maintenance 327,381 452,145 478,359 479,688 465,544 -2.7% Pool 273,716 337,213 426,224 429,750 453,072 6.3% Events - - - - - Transfers Out - 50,799 50,000 Total Expenditures 1,379,617 1,682,859 1,803,972 1,925,969 2,012,560 11.6% City of Port Townsend COMMUNITY SERVICES FUND BUDGET SUMMARY Community Svs City of Port Townsend 2018 Budget Page 68 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 5,071 65,185 71,096 71,096 83,580 Revenues Taxes 102,000 261,207 402,000 402,000 406,500 1.1% Miscellaneous Revenue 590 1,007 800 1,600 800 0.0% Bond Proceeds - - - 3,304,098 - Operating Transfers In 2,304,267 1,213,697 1,189,203 1,292,488 1,267,855 6.6% Total Revenue 2,406,857 1,475,911 1,592,003 5,000,186 1,675,155 5.2% Expenditures Debt Service Principal 1,700,000 665,000 845,000 890,000 870,000 3.0% Debt Service Interest 645,161 803,800 737,565 688,619 772,656 4.8% Professional Services 1,582 1,200 3,000 1,700 3,000 0.0% Bond Issue Costs - - - 103,285 - Transfers Out - - - 3,304,098 - Total Expenditure 2,346,743 1,470,000 1,585,565 4,987,702 1,645,656 3.8% Net Change in Fund Balance 60,114 5,911 6,438 12,484 29,499 358.2% Ending Fund Balance 65,185 71,096 77,534 83,580 113,079 Sufficient to Meet Obligations 2.7%4.8%4.9%1.7%6.8% Meets Policy ** In 2017, The City Refinanced its 2018 GO Bonds. Receipts were recoginized in this fund and later transferred to a Capital Projects Fund. GENERAL OBLIGATION DEBT SERVICE BUDGET SUMMARY General Debt Svs ** City of Port Townsend City of Port Townsend 2018 Budget Page 69 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 177,090 1,334,201 1,309,017 1,309,017 3,031,737 Revenues State & Federal Grants 481,640 - 534,000 112,100 350,000 -34.5% Miscellaneous Revenue 279 129 80,200 14,995 74,500 -7.1% Other Financing Sources 4,546,167 - 500,000 - - -100.0% Operating Transfers In 1,394,210 75,403 1,261,676 3,298,506 1,315,841 4.3% Total Revenue 6,422,296 75,532 2,375,876 3,425,601 1,740,341 -26.7% Expenditures G/F Overhead 40,716 44,105 61,676 61,676 25,841 -58.1% Intergovernemental Services 65,267 9,091 74,000 34,000 80,000 8.1% Building Improvements 669,742 16,217 2,240,000 510,000 1,659,500 -25.9% Land Acquisitions - - - - - Other Improvements 2,103,995 - - - - Debt Issue Costs 45,660 - - - - Transfers Out 2,339,804 31,303 1,200,000 1,097,205 2,932,813 144.4% Total Expenditure 5,265,184 100,716 3,575,676 1,702,881 4,698,155 31.4% Net Change in Fund Balance 1,157,112 (25,184) (1,199,800) 1,722,720 (2,957,814) 146.5% Ending Fund Balance 1,334,201 1,309,017 109,217 3,031,737 73,923 Sufficient to Meet Obligations 20.8% 1733.1%4.6%88.5%4.2% Meets Policy General CIP Fund Breakdown: Beginning 2017 Change in 2017 Ending 2018 Change in 2018 Ending Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance 301 - General Capital 80,048 18,876 98,923 (25,000) 73,923 315 - 2015 Bonds 1,228,970 (188,970) 1,040,000 (1,040,000) (0) 350 - 2017 Bonds - 1,892,813 1,892,813 (1,892,813) (0) Total 1,309,017 1,722,719 3,031,737 (2,957,814) 73,923 GENERAL CAPITAL PROJECTS BUDGET SUMMARY General CIP City of Port Townsend City of Port Townsend 2018 Budget Page 70 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 218,481 (38,323) (116,721) (116,721) (31,313) Revenues State & Federal Grants 1,199,083 767,020 2,910,000 2,675,000 1,345,000 -53.8% Miscellaneous Revenue 10,211 - 25 300 300 1100.0% Other Financing Sources 330,000 20,278 1,015,000 80,000 - -100.0% Operating Transfers In 155,000 154,900 44,284 1,069,284 1,717,302 3777.9% Total Revenue 1,694,294 942,198 3,969,309 3,824,584 3,062,602 -22.8% - Expenditures G/F Overhead 21,976 29,846 44,284 44,284 39,489 -10.8% Intergovernemental Services 254,115 139,828 305,000 318,000 249,000 -18.4% Land Acquisitions 230,455 78,942 - - - Road Improvements 409,005 751,980 3,620,000 3,043,000 1,911,000 -47.2% Sidewalk Improvements 955,546 - - 10,000 818,000 Transfers Out 80,000 20,000 - 323,892 - Total Expenditure 1,951,098 1,020,596 3,969,284 3,739,176 3,017,489 -24.0% Net Change in Fund Balance (256,804) (78,398) 25 85,408 45,113 180352.0% Ending Fund Balance (38,323) (116,721) (116,696) (31,313) 13,800 Sufficient to Meet Obligations -2.3% -12.4%-2.9%-0.8%0.5% Meets Policy Street CIP Fund Breakdown: Beginning 2017 Change in 2017 Ending 2018 Change in 2018 Ending Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance 304 - Street Vacation Proceeds 5,325 - 5,325 - 5,325 305 - Street Capital Fund (122,046) 85,408 (36,638) 45,113 8,475 - - - - - Total (116,722) 85,408 (31,313) 45,113 13,800 City of Port Townsend STREET CAPITAL PROJECTS BUDGET SUMMARY Street CIP City of Port Townsend 2018 Budget Page 71 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 2,773,448 631,796 1,993,822 1,993,822 108,511 Revenues Charges for Goods & Services 309,095 322,514 1,147,100 1,147,100 868,600 -24.3% Miscellaneous Revenue 48,934 1,389 3,955 11,000 9,100 130.1% Other Financing Sources 2,017,660 15,374,053 5,180,000 3,107,381 4,479,264 -13.5% Operating Transfers In 1,060,372 136,665 350,958 1,157,958 2,847,090 711.2% Total Revenue 3,436,061 15,834,621 6,682,013 5,423,439 8,204,054 22.8% Expenditures G/F Overhead 92,784 58,690 144,117 144,117 278,894 93.5% Interfund Loan Payments 161,251 - - 250,000 - Debt Service Principal - - 72,632 72,631 1,720,000 2268.1% Debt Service Interest - - 3,974 34,633 73,474 1749.0% Intergovernemental Services 370,798 703,311 360,000 512,000 355,000 -1.4% Other Improvements - Water 4,843,053 13,473,907 2,320,000 5,040,000 2,090,000 -9.9% Other Improvements - Sewer 109,827 236,687 540,000 190,000 285,000 -47.2% Miscellaneous - - - - - Transfers Out***- - 1,074,327 1,065,369 1,445,547 34.6% Total Expenditure 5,577,713 14,472,595 4,515,049 7,308,750 6,247,915 38.4% Net Change in Fund Balance (2,141,652) 1,362,026 2,166,964 (1,885,311) 1,956,139 -9.7% Ending Fund Balance 631,796 1,993,822 4,160,786 108,511 2,064,650 Sufficient to Meet Obligations 18.4%12.6%62.3%2.0%25.2% Meets Policy Water / Sewer CIP Fund Breakdown: Beginning 2017 Change in 2017 Ending 2018 Change in 2018 Ending Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance 415 - Water / Sewer CIP (598,618) (1,926,259) (2,524,877) 2,531,364 6,487 417 - 1956 Trans Line Fund 1,182,821 (28,683) 1,154,139 (673,778) 480,360 419 - 1978 Revenue Bond Fund - - - - - 430 - Utility Debt Reserve Fund 1,409,619 69,631 1,479,250 98,553 1,577,803 Total 1,993,822 (1,885,311) 108,511 1,956,139 2,064,650 ‐                           ** This Fund Summary includes Water / Sewer Capital, Transmission Line Fund, 1978 Revenue Bond Fund & Water/Sewer Debt Service Fund *** Operating Transfers include funding Water Capital Debt Service in the Water / Sewer Operating Fund WATER/SEWER CAPITAL BUDGET SUMMARY Water Sewer CIP ** City of Port Townsend City of Port Townsend 2018 Budget Page 72 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance - - 126,627 126,627 87,227 Revenues Charges for Goods & Services - 126,501 144,000 150,000 - -100.0% Miscellaneous Revenue - 126 50 600 600 1100.0% Other Financing Sources - - 1,200,000 450,000 850,000 -29.2% Operating Transfers In - - - - 220,000 Total Revenue - 126,627 1,344,050 600,600 1,070,600 -20.3% Expenditures G/F Overhead - - - - - Intergovernemental Services - - 130,000 100,000 185,000 42.3% Other Improvements - Storm - - 1,200,000 540,000 815,000 -32.1% Miscellaneous - - - - - Transfers Out - - - - - Total Expenditure - - 1,330,000 640,000 1,000,000 -24.8% Net Change in Fund Balance - 126,627 14,050 (39,400) 70,600 402.5% Ending Fund Balance - 126,627 140,677 87,227 157,827 Sufficient to Meet Obligations 10.5%14.5%14.7% Meets Policy City of Port Townsend STORM WATER CAPITAL FUND BUDGET SUMMARY Storm Water CIP City of Port Townsend 2018 Budget Page 73 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 1,716,496 2,200,191 3,018,071 3,018,071 2,980,534 Revenues Intergovernmental Services 3,968 1,524 - 528 Charges for Goods & Services 4,681,557 4,760,833 4,826,064 4,826,064 5,354,110 10.9% Fines & Penalties Miscellaneous Revenue 81,764 72,541 61,790 68,855 61,800 0.0% Other Financing Sources - Operating Transfers In 25,000 434,782 820,369 820,369 801,047 -2.4% Total Revenue 4,792,289 5,269,680 5,708,223 5,715,816 6,216,957 8.9% Expenditures G/F OH Charges 340,596 575,154 702,044 690,696 751,374 7.0% Salaries & Wages 1,276,418 1,308,523 1,340,626 1,352,184 1,451,757 8.3% Personnel Benefits 591,522 616,796 653,321 655,696 723,193 10.7% Supplies 233,860 234,663 288,422 283,622 276,550 -4.1% Debt Principal 327,278 674,551 896,275 896,275 924,344 3.1% Debt Interest 19,917 45,155 182,365 182,364 88,155 -51.7% Professional Services 44,887 64,844 219,900 204,200 81,896 -62.8% Communications 38,176 38,045 43,495 44,824 41,172 -5.3% Advertising 50 702 1,380 931 880 -36.2% Operating Rents & Leases 5,099 10,849 10,087 7,580 15,777 56.4% Intergovernemental Services 622,996 325,905 506,951 544,815 563,589 11.2% Machinery & Equipment 13,104 92,091 25,800 29,170 308,350 1095.2% Other Improvements - - 165,000 65,000 510,000 209.1% Repair & Maintenance 63,019 63,345 65,762 70,500 74,000 12.5% Equipment Rental 255,000 264,040 311,054 311,054 311,054 0.0% Training/Memberships & Travel 3,497 3,821 19,485 22,835 28,525 46.4% Miscellaneous 69,894 60,265 187,131 188,149 153,668 -17.9% Transfers Out 403,280 73,051 72,000 203,458 1,557,590 2063.3% Total Expenditure 4,308,593 4,451,800 5,691,098 5,753,353 7,861,875 38.1% Net Change in Fund Balance 483,695 817,880 17,125 (37,537) (1,644,918) -9705.6% Ending Fund Balance 2,200,191 3,018,071 3,035,196 2,980,534 1,335,616 60 Days of Operating Expenses 186 247 195 189 62 Meets Policy WATER/SEWER OPERATIONS BUDGET SUMMARY Water Sewer Op City of Port Townsend City of Port Townsend 2018 Budget Page 74 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 235,971 134,604 76,245 76,245 159,140 Revenues Intergovernmental Services 32,413 - - - - Charges for Goods & Services 509,329 560,708 560,600 560,600 737,418 31.5% Miscellaneous Revenue 238 409 300 300 600 100.0% Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenue 541,981 561,116 560,900 560,900 738,018 31.6% Expenditures G/F OH Charges 43,600 36,393 41,209 41,209 50,800 23.3% Salaries & Wages 208,774 201,369 211,493 205,000 219,575 3.8% Personnel Benefits 92,027 94,749 109,104 105,104 112,753 3.3% Supplies 1,341 1,932 7,000 2,000 7,000 0.0% Debt Principal - - - - - Debt Interest - - - - - Professional Services - - - 1,000 16,000 Communications - - - - - Advertising - - - - - Operating Rents & Leases - - - - - Intergovernmental 99,022 96,170 61,150 59,550 68,617 12.2% Machinery & Equipment - - - - - Other Improvements 136,195 119,785 - - 15,000 Repair & Maintenance 5,054 2,402 6,500 10,000 4,000 -38.5% Equipment Rental 57,334 66,374 49,742 49,742 49,742 0.0% Training/Memberships & Travel - - 900 900 1,400 55.6% Miscellaneous - 250 - 500 250 Taxes - - - - - Overhead - - - - - Transfers Out - 51 - 3,000 220,000 Total Expenditure 643,348 619,476 487,098 478,005 765,137 57.1% Net Change in Fund Balance (101,367) (58,360) 73,802 82,895 (27,119) -136.7% Ending Fund Balance 134,604 76,245 150,047 159,140 132,021 60 Days of Operating Expenses 76 45 112 122 63 Meets Policy City of Port Townsend STORM WATER OPERATIONS BUDGET SUMMARY Storm Water Op City of Port Townsend 2018 Budget Page 75 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 713,669 829,341 790,921 790,921 686,185 Revenues Charges for Goods & Services 749,686 785,846 865,316 865,316 865,316 0.0% Miscellaneous Revenue 8,779 18,161 22,200 12,547 10,475 -52.8% Operating Transfers In 50,000 190,000 - - 494,600 Total Revenue 808,465 994,007 887,516 877,863 1,370,391 54.4% Expenditures Salaries & Wages 261,295 276,677 298,813 299,500 301,528 0.9% Personnel Benefits 111,894 126,457 145,741 145,297 147,937 1.5% Supplies 101,815 129,392 163,700 164,500 163,500 -0.1% Professional Services 4,855 1,862 1,200 1,600 1,200 0.0% Communications 22,370 18,609 24,070 21,200 22,760 -5.4% Operating Rents & Leases 209 57 - 200 500 Intergovernemental Services 36,930 40,850 57,965 56,159 66,947 15.5% Machinery & Equipment 63,909 337,891 117,000 182,000 629,988 438.5% Repair & Maintenance 12,549 21,305 33,000 33,000 32,000 -3.0% Equipment Rental 1,886 1,886 2,997 2,997 2,997 0.0% Utilities 9,757 10,845 10,500 10,500 13,000 23.8% Training/Memberships & Travel 749 525 5,500 5,600 6,900 25.5% Miscellaneous 9,278 7,872 5,000 5,000 5,000 0.0% Overhead Allocation 55,297 58,200 55,047 55,047 71,398 29.7% Transfers Out - - - - - Total Expenditure 692,793 1,032,427 920,533 982,600 1,465,655 59.2% Net Change in Fund Balance 115,671 (38,420) (33,017) (104,737) (95,264) 188.5% Ending Fund Balance 829,341 790,921 757,904 686,185 590,921 Sufficient to Meet Obligations 102.6%79.6%85.4%78.2%43.1% Meets Policy City of Port Townsend EQUIPMENT RENTAL & REPLACEMENT FUND BUDGET SUMMARY ERR (Internal Service Fund) City of Port Townsend 2018 Budget Page 76 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 46,742 112,074 175,382 175,382 211,924 Revenues Charges for Goods & Services 883,499 999,810 944,000 1,039,000 1,009,000 6.9% Miscellaneous Revenue 51 338 250 630 500 100.0% Other Financing Sources Operating Transfers In - - - - - Total Revenue 883,551 1,000,147 944,250 1,039,630 1,009,500 6.9% Expenditures Salaries & Wages 494,526 557,735 470,157 566,200 589,749 25.4% Personnel Benefits 217,516 253,575 227,026 261,050 264,541 16.5% Supplies 22,594 5,847 7,500 7,500 7,500 0.0% Professional Services 108 10,000 10,000 10,000 0.0% Communications 8,494 8,210 12,000 9,000 8,700 -27.5% Advertising - - 600 600 600 0.0% Operating Rents & Leases 176 - - - - Intergovernemental Services - - - - Machinery & Equipment 1,829 18,695 30,100 30,100 30,100 0.0% Repair & Maintenance - - 1,000 1,000 1,000 0.0% Equipment Rental 11,408 11,408 12,463 12,463 12,463 0.0% Training/Memberships & Travel 754 2,855 19,800 12,000 19,600 -1.0% Miscellaneous 6,428 12,791 14,100 10,000 14,100 0.0% Overhead Allocation 54,493 65,615 83,175 83,175 84,211 1.2% Transfers Out - - - - - Total Expenditure 818,218 936,840 887,921 1,003,088 1,042,564 17.4% Net Change in Fund Balance 65,333 63,307 56,329 36,542 (33,064) -158.7% Ending Fund Balance 112,074 175,382 231,711 211,924 178,860 Sufficient to Meet Obligations 12.7%17.5%24.5%20.4%17.7% Meets Policy City of Port Townsend ENGINEERING FUND BUDGET SUMMARY Engineering (Internal Service Fund) City of Port Townsend 2018 Budget Page 77 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 25,000 24,666 24,732 24,732 24,852 Revenues Miscellaneous Revenue 26 66 50 120 120 140.0% Other Financing Sources - - - - - Operating Transfers In - 3,007 3,000 30,500 19,500 550.0% Total Revenue 26 3,073 3,050 30,620 19,620 543.3% Expenditures Personnel Benefits 360 3,007 3,000 30,500 19,500 550.0% Miscellaneous Transfers Out - - - - - Total Expenditure 360 3,007 3,000 30,500 19,500 550.0% Net Change in Fund Balance (334) 66 50 120 120 140.0% Ending Fund Balance 24,666 24,732 24,782 24,852 24,972 Sufficient to Meet Obligations 94977.4% 804.9% 812.5%81.2% 127.3% Meets Policy City of Port Townsend UNEMPLOYMENT RESERVE FUND BUDGET SUMMARY Unemployment (Internal Service Fund) City of Port Townsend 2018 Budget Page 78 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 213,020 214,836 226,297 226,297 230,695 Revenues Taxes 35,020 39,245 35,245 35,245 34,235 -2.9% Miscellaneous Revenue 233 632 640 640 500 -21.9% Other Financing Sources Operating Transfers In - - - - - Total Revenue 35,253 39,877 35,885 35,885 34,735 -3.2% Expenditures Salaries & Wages 16,767 14,845 14,419 11,900 10,726 -25.6% Personnel Benefits 13,706 10,638 17,500 17,500 15,000 -14.3% Overhead Allocation 2,964 2,932 2,087 2,087 1,414 -32.2% Transfers Out - - - - - Total Expenditure 33,437 28,416 34,006 31,487 27,140 -20.2% Net Change in Fund Balance 1,816 11,461 1,879 4,398 7,595 304.2% Ending Fund Balance 214,836 226,297 228,176 230,695 238,290 Sufficient to Meet Obligations 609.4% 567.5% 635.9% 642.9% 686.0% Meets Policy FIREMEN'S PENSION FUND BUDGET SUMMARY LEOFF 1 City of Port Townsend City of Port Townsend 2018 Budget Page 79 of 172 2015 2016 2017 2017 2018 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2018 Proposed vs 2017 Adopted Beginning Fund Balance 23,595 31,624 37,297 37,297 39,599 Revenues Miscellaneous Revenue 13,347 10,564 12,000 12,000 12,000 0.0% Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenue 13,347 10,564 12,000 12,000 12,000 0.0% Expenditures G/F OH Alloc 4,210 3,272 2,698 2,698 5,419 100.9% Supplies 709 1,453 2,000 2,000 6,000 200.0% Repair & Maintenance 399 167 9,000 - 5,000 -44.4% Other Improvements - - 5,000 5,000 5,000 0.0% Miscellaneous - - - - - Transfers Out - - - - - Total Expenditure 5,318 4,891 18,698 9,698 21,419 14.6% Net Change in Fund Balance 8,029 5,673 (6,698) 2,302 (9,419) 40.6% Ending Fund Balance 31,624 37,297 30,599 39,599 30,180 Sufficient to Meet Obligations 236.9% 353.0% 255.0% 330.0% 251.5% Meets Policy GOLF COURSE FUND BUDGET SUMMARY Golf Course City of Port Townsend City of Port Townsend 2018 Budget Page 80 of 172 Fi n a n c e 1 f u l l t i m e A c c o u n t a n t / C o n t r a c t S p e c i a l i s t 1 0 0 , 0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Ad m i n i s t r a t i o n C o m m u n i c a t i o n s S p e c i a l i s t 1 0 0 , 0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l G e n e r a l F u n d P e r s o n n e l C o s t s - 20 0 , 0 0 0 Li b r a r y A d u l t S e r v i c e s L i b r a r i a n - F r e e z e 8 0 , 0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Li b r a r y A d d i t i o n a l L i b r a r y A s s i s t a n t H o u r s 18 , 4 3 7 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l L i b r a r y F u n d P e r s o n n e l C o s t s - 98 , 4 3 7 Co m m u n i t y S e r v i c e s 1 f u l l t i m e v o l u n t e e r / e v e n t s c o o r d i n a t o r 73 , 2 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P a r k s R e s t o r a t i o n o f 1 . 0 P a r k s M a i n t e n a n c e F T E 73 , 2 0 0 Deferred/Not Funded T o t a l C o m m u n i t y S e r v i c e s F u n d P e r s o n n e l C o s t s - 14 6 , 4 0 0 T o t a l D e f e r r e d & U n f u n d e d P e r s o n n e l C o s t s - 4 4 4 , 8 3 7 Ge n e r a l F u n d Lib r a r y F u n d Co m m u n i t y S e r v i c e s F u n d Ci t y o f P o r t T o w n s e n d Un m e t N e e d s - D e f e r r e d & U n f u n d e d I t e m s Bu d g e t 2 0 1 8 Fu n d / D e p a r t m e n t De s c r i p t i o n o f I t e m O n e T i m e O n g o i n g Status De f e r r e d & U n f u n d e d P e r s o n n e l C o s t s 11 / 3 0 / 2 0 1 7 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 81 of 172 Ma y o r & C o u n c i l W a g e & B e n e f i t E v a l u a t i o n f o r C i t y C o u n c i l m e m b e r s De f e r r e d - R e v i e w i n 2 0 1 8 f o r p o s s i b l e f u t u r e f u n d i n g Ad m i n i s t r a t i o n R e p l a c e C o n f e r e n c e R o o m T a b l e & C h a i r s 13 , 8 8 8 D e f e r r e d / N o t F u n d e d Ad m i n i s t r a t i o n W e b s i t e U p d a t e s & i m p l e m e n t C o m m u n i c a t i o n s S t r a t e g y 40 , 0 0 0 D e f e r r e d / N o t F u n d e d Ad m i n i s t r a t i o n C o m m u n i t y H e a l t h I n i t i a t i v e P r o g r a m 43 , 0 0 0 D e f e r r e d / N o t F u n d e d Fi n a n c e F i n a n c i a l S o f t w a r e C o n v e r s i o n ( c o s t w i l l b e s p l i t w i t h U t i l i t y B i l l i n g ) 12 5 , 0 0 0 D e f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s C i t y M a n a g e r R e c r u i t m e n t A d v e r t i s i n g 2, 5 0 0 - 3 5 , 0 0 0 D e f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s E n c r y p t i o n S o f t w a r e 93 8 D e f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s V o l u n t e e r M a n a g e m e n t S o f t w a r e 2,2 0 0 D e f e r r e d / N o t F u n d e d Hu m a n R e s o u r c e s C i t y w i d e t r a i n i n g & c a r e e r p a t h i n g p r o g r a m 10 , 2 5 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Ci t y C l e r k U p g r a d e t o L a s e r f i c h e S o f t w a r e - R e c o r d s M a n a g e m e n t 30 , 0 0 0 D e f e r r e d / N o t F u n d e d Po l i c e A d m i n i s t r a t i o n C h e c k M a t e A s s e t / I n v e n t o r y S o f t w a r e 6,0 6 2 5 0 0 D e f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s J e f f e r s o n C o u n t y S h e r r i f f C o v e r a g e - O v e r t i m e 25 , 0 0 0 D e f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s P P E E q u i p m e n t - R e s p i r a t o r M a s k s ( Q t y 1 5 ) 12 , 4 3 5 D e f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s P P E E q u i p m e n t - H e l m e t s ( Q t y 1 5 ) 21 , 1 2 0 D e f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s E q u i p m e n t - M o b i l e P a r k i n g E n f o r c e m e n t C o m p u t e r 9,7 7 6 D e f e r r e d / N o t F u n d e d Po l i c e O p e r a t i o n s T r a i n i n g i n c r e a s e 5,0 0 0 D e f e r r e d / N o t F u n d e d T o t a l D e f e r r e d G e n e r a l F u n d N o n P e r s o n n e l I t e m s 32 9 , 4 1 9 1 5 , 7 5 0 Li b r a r y I n c r e a s e i n L i b r a r y M a t e r i a l A c q u i s i t i o n s 5,0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l D e f e r r e d L i b r a r y N o n P e r s o n n e l I t e m s - 5 , 0 0 0 St r e e t M a i n t e n a n c e S t r e e t M a i n t e n a n c e & R e p a i r 10 0 , 0 0 0 D e f e r r e d / N o t F u n d e d St r e e t M a i n t e n a n c e A D A T r a n s i t i o n P l a n C o n s u l t i n g 70 , 0 0 0 D e f e r r e d / N o t F u n d e d T o t a l D e f e r r e d S t r e e t N o n P e r s o n n e l I t e m s 70 , 0 0 0 1 0 0 , 0 0 0 Co m m u n i t y S e r v i c e s - A r t s C o m m i s s i o n N e w i n i t i a t i v e s r e q u e s t s f r o m A r t s C o m m i s s i o n 85 , 4 0 0 D e f e r r e d / N o t F u n d e d Co m m u n i t y S e r v i c e s - F a c i l i t i e s P i n k H o u s e C a r p e t R e p l a c e m e n t 3,0 0 0 D e f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Co m m u n i t y S e r v i c e s - F a c i l i t i e s W i n d o w B l i n d s f o r C i t y H a l l - A d d i t i o n a l F u n d s r e q u e s t e d 5,0 0 0 A d d ' l F u n d s d e f e r r e d : u s e e x i s t i n g m a i n t b u d g e t Co m m u n i t y S e r v i c e s - M t n V i e w G r i n d i n g & S e a l i n g C o n c r e t e F l o o r i n R e c B u i l d i n g F o y e r 5,0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - M t n V i e w R e p l a c e E n t r y D o o r i n F o y e r 6,0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - M t n V i e w D e m o l i s h O l d D e c k 2,0 0 0 In c l u d e d i n 2 0 1 7 O p e r a t i n g B u d g e t Co m m u n i t y S e r v i c e s - P a r k s K a h T a i B a t h r o o m R o o f i n g 7,0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P a r k s T r a i l M a i n t e n a n c e ( P u g e t S o u n d C r e w ) 5,0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P a r k s K u b o t a U t i l i t y V e h i c l e f o r T r a i l W o r k 10 , 0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P o o l R e b u i l d S a u n a 5,0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P o o l G r i n d & S e a l L o c k e r R o o m F l o o r s 9,0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P o o l C l i m b i n g W a l l , S l i d e , P l a y g r o u n d 43 , 0 0 0 Deferred/Not Funded T o t a l C o m m u n i t y S e r v i c e s N o n P e r s o n n e l I t e m s 10 0 , 0 0 0 85 , 4 0 0 St r e e t C a p i t a l P U D U n d e r g r o u n d i n g / P a t h w a y s 35 , 0 0 0 Deferred/Not Funded St r e e t C a p i t a l S R 2 0 O v e r l a y ( C i t y P o r t i o n ) 30 , 0 0 0 Deferred/Not Funded St r e e t C a p i t a l N o n M o t o r i z e d P l a n 15 , 0 0 0 Deferred/Not Funded St r e e t C a p i t a l 7 t h S t r e e t D e s i g n 10 , 0 0 0 Deferred/Not Funded St r e e t C a p i t a l P e d e s t r i a n W a l k w a y ( S R 2 0 ) L o g a n S t t o H a n c o c k S t 80 , 0 0 0 Deferred/Not Funded Co m m u n i t y S e r v i c e s - P a r k s R e p a i r s t o S k a t e P a r k F e n c e 25 , 0 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l G e n e r a l C a p i t a l F u n d N o n P e r s o n n e l I t e m s 19 5 , 0 0 0 - T o t a l U t i l i t y F u n d N o n P e r s o n n e l I t e m s - - Po l i c e O p e r a t i o n s P o l i c e P a t r o l V e h i c l e s ( Q t y 2 ) 16 3 , 6 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d Eq u i p m e n t R e n t a l - F l e e t D u m p t r u c k r e p l a c e m e n t - S t r e e t s 85 , 0 0 0 De f e r r e d f r o m 2 0 1 7 / N o t F u n d e d T o t a l E q u i p m e n t R e n t a l F u n d N o n P e r s o n n e l I t e m s 24 8 , 6 0 0 - T o t a l D e f e r r e d & U n f u n d e d N o n P e r s o n n e l I t e m s 94 3 , 0 1 9 2 0 6 , 1 5 0 To t a l D e f e r r e d & U n f u n d e d P e r s o n n e l & N o n P e r s o n n e l I t e m s 94 3 , 0 1 9 65 0 , 9 8 7 Eq u i p m e n t R e n t a l F u n d s De f e r r e d & U n f u n d e d N o n P e r s o n n e l I t e m s Ge n e r a l F u n d Lib r a r y F u n d St r e e t F u n d Co m m u n i t y S e r v i c e s F u n d Ge n e r a l & S t r e e t C a p i t a l F u n d s Ut i l i t y F u n d s Ci t y o f P o r t T o w n s e n d Un m e t N e e d s - D e f e r r e d & U n f u n d e d I t e m s Bu d g e t 2 0 1 8 Fu n d / D e p a r t m e n t De s c r i p t i o n o f I t e m O n e T i m e O n g o i n g Status 11 / 3 0 / 2 0 1 7 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 82 of 172 CITY OF PORT TOWNSEND, WASHINGTON CAPITAL IMPROVEMENT PLAN The six-year Capital Improvement Plan (CIP) includes capital projects for 2018 – 2023. This plan includes capital projects that add new infrastructure to the City and capital improvements for our aging City infrastructure. The most significant planned capital projects included in this plan are: Mountain View Phase III In 2015 the City voters approved a $3.6 million bond for improvements to the Mountain View Campus. The first phase of the project – Energy Efficiency and Emergency Repairs - was completed in 2015 at a cost of $2.2 million. This work included upgrades to the heating and ventilating systems; replacement of the old diesel fuel boilers with new, high efficiency propane boilers; new energy efficient lighting; and new roofing and roof insulation for the classroom building. The final phase of the work – improvements to the interior and exterior of the Mountain View Commons - has been under design in 2017. It is scheduled to go out for bids in late 2017 and be constructed in 2018. The work includes improved ADA access to the classroom building and in the pool and gym building; fire alarm and emergency lighting system replacement; improvements to the Food Bank, Working Image, and Police Department leased spaces; hallway improvements, and painting the building exterior. This phase will use the remainder of the 2015 Bonds as well as an additional $414,000 Community Development Block Grant received for the Food Bank and Working Image. As with all major capital projects the exact scope of work will depend on the results of the bidding process as tasks may be added or deleted to fit the available budget. Library Repair The Library is scheduled for roof and window replacement on the Annex building and replacement of the exterior retaining wall, as well as other miscellaneous repairs. The project will be funded in part from donations and the 2017 bonds. Water Street Improvement Project This project involves pavement replacement and streetscape improvements on Water Street from Taylor Street to the Ferry terminal. The pavement upgrade is funded through a state Transportation Improvement Board (TIB) grant for $690,000. The sidewalk replacement and streetscape improvements are being funded by the 2017 Bond. The project will bid in late 2017, with the start of construction scheduled for January 2018. The project includes water, sewer and stormwater upgrades funded by those respective utilities. City of Port Townsend 2018 Budget Page 83 of 172 SR 20 Pedestrian Walkway – Logan to Hancock This capital budget item is for the permitting and preliminary design of a pedestrian sidewalk and crossing of the ravine to connect existing sidewalks on each side of the ravine. The design is funded by a federal grant with a City match funded by the 2017 bond. Funding for the construction is not yet determined; once the preliminary design is complete and project costs better known, the City will seek grant funding for construction. Visitor Center – Sims Way Frontage Improvements This project adds sidewalks, stormwater management, parking and streetscape enhancements as well as the placement of public art on Sims Way in front of the visitor center as well as the Thayer Street intersection. The project is funded by the 2017 Bond and is anticipated to be designed, bid and constructed in 2018. 7th Street This project is for the concept design of 7th Street which is a connector street from Rainier Street to Discovery Road. Currently, there is no funding for design and construction. The concept design will be used for seeking grants and loans and to coordinate improvements by the adjacent commercial properties. Complete Streets The City received $250,000 in grant funding from TIB for improvements to ADA ramps and sidewalks. These small projects will be completed in 2018. Jefferson Street Sidewalk The City was awarded another TIB grant to install a sidewalk on Jefferson Street from Taylor Street to Washington, to fill in a missing link that will connect an accessible route from downtown to uptown. The project will provide an alternative to the Haller fountain stairs and the “buggy trail.” The project will be designed, bid and constructed in 2018. Water Treatment Facility 5 Million Gallon Reservoir These major projects were completed in 2017 and are fully operational; final closeout will extend into early 2018. Water Street Overlay - Water Line Replacement This project will replace the existing water line in Water Street as part of the streetscape and pavement overlay. This water line will be constructed in 2018 and is funded with system development charge (SDC) reserves. Big Quilcene Diversion This project is an important repair for the reliability of the water system. It involves repair of the timber crib water diversion structure on the Big Quilcene River. Field investigation City of Port Townsend 2018 Budget Page 84 of 172 work and preliminary design were undertaken in 2016. Design is currently underway. Construction work will take place in the second half of 2018. Water Street Sewer Sewer and side sewer replacements are part of the Water Street Improvement Project to be completed in 2018. Outfall Replacement Replacement of the existing sewer outfall is a requirement of the City’s wastewater discharge permit. A preliminary design has been completed. Permitting will be undertaken in 2018, with final design in 2019 and construction anticipated in 2020. The permitting and predesign is funded in part by a Department of Ecology grant and loan. CERB Howard (Rainier) Street and Regional Stormwater projects The CERB funding provides for a portion of the stormwater facilities on the Howard Street project as well as funding of a regional stormwater pond and infiltration for the runoff from the properties adjacent to Rainier Street both north and south of Sims Way. The new system will allow denser development to occur in the commercial district while providing necessary stormwater treatment and detention. Total CERB loan funding is $1,200,000, of which a portion already went to Rainier Street in 2017. The remaining funds will be used for the construction of the regional facility is planned for late 2018. Other Projects Other projects that have been identified in the Capital Improvement Plan that need to be addressed over a six-year period include: • Discovery Road - Sheridan to Howard $ 8,350,000 • Sims Way Improvements $ 5,750,000 • South West Sewer Pump Station $ 4,330,000 • Washington Street Improvements $ 2,350,000 • Gaines Street Pump Station $ 465,000 • Cliff Street Sewer $ 425,000 • Infiltration/Inflow Removal $ 260,000 • Sidewalk Projects – ADA improvements $ 250,000 • Wastewater Master Plan $ 130,000 • Logan Street Stormwater Upgrades $ 40,000 • Coordination with the PUD on pathways $no estimate The projects listed above that are included in the 6-year Capital Improvement Plan are still in the initial review stage. As design and construction details are developed, costs will be updated and these projects will be prioritized based on the greatest need and available funding. Most of these projects do not have a funding source now but have been identified as City priorities. City of Port Townsend 2018 Budget Page 85 of 172 City of Port Townsend 2018 Budget Page 86 of 172 City of Port Townsend 2018 Budget Page 87 of 172 City of Port Townsend 2018 Budget Page 88 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 89 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 90 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 91 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 92 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 93 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 94 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 95 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 96 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 97 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 98 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 99 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 100 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 101 of 172 City of Port Townsend 2018 Budget Page 102 of 172 Resolution 17-028 RESOLUTION NO. 17-028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, APPROVING THE 2018-2023 SIX-YEAR TRANSPORTATION IMPROVEMENT PROGRAM AND AUTHORIZING THE CITY MANAGER TO SUBMIT THIS TO THE STATE WHEREAS, the City Council has reviewed the 2018-2023 Six -Year Transportation Improvement Program (TIP) and held a public hearing on June 19, 2017 for public comment; and, WHEREAS, the City is required by the State of Washington Department of Transportation (WSDOT) to adopt its annual six-year Transportation Improvement Program TIP) by June 30 of each year; and, WHEREAS, the TIP is primarily intended to designate federally funded and regionally significant projects; and, WHEREAS, the City Council has established priorities for transportation improvement projects and these are reflected in the TIP; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend that the Mayor is hereby authorized to sign this resolution approving the Six -Year Transportation Improvement Program for 2018-2023 for submission to the State Department of Transportation for their State Transportation Improvement Program (STIP). And that the City Manager may make minor modifications to the TIP for the next 12 months to reflect changes in project funding or implementation schedules that may more closely align with actual project progress and to meet the needs of WSDOT and the STIP. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 19th day of June 2017. Attest: Joanna Sanders, CMC City Clerk Deborah S. Stin/ Mayor Approved as toform: Z z Steven L. Gross City Attorney City of Port Townsend 2018 Budget Page 103 of 172 City of Port Townsend 2018 Budget Page 104 of 172 Si x Ye a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m (2 0 1 8 ‐ 20 2 3 ) Co u n t y   N a m e Jefferson County   Po r t   T o w n s e n d MP O / R T P O : NON/PEN Co .   N o . : 16 Ci t y   N o . : 10 0 5 Fu n d   S o u r c e   I n f o r m a t i o n E x p e n d i t u r e   S c h e d u l e   F u n c t i o n a l   C l a s s P r i o r i t y   N u m b e r Pr o j e c t P r o j e c t   L e n g t h P h a s e P h a s e   S t a r t   Y e a r F u n d i n g   S t a t u s Fe d e r a l   Fu n d   Co d e  F e d e r a l   Fu n d s   St a t e   F u n d   Co d e   S t a t e   F u n d s     L o c a l   F u n d s   1s t 2 n d 3 r d 4 t h 5 t h 6 t h Environment Type RW Required 16 Wa t e r   S t r e e t   O v e r l a y 0. 1 1 C N   2 0 1 8 S TI B 55 0 , 0 0 0                       90 0 , 0 0 0                        1 , 4 5 0 , 0 0 0      CE N fr o m :   T a y l o r   S t               t o :   F e r r y   T e r m i n a l Gr i n d   a n d   d i g o u t s   w i t h   4 "   o v e r l a y ,   r e b u i l d   t h e   p a v e m e n t   a n d   AD A   r a m p  m o d i f i c a t i o n s 16 SR   2 0   P e d e s t r i a n   W a l k w a y 0. 1 4 P E   2 0 1 8 S T A P 9 5 , 0 0 0                 13 , 1 8 8                            11 0 , 8 8 0               CE N fr o m :   L o g a n   S t r e e t                 t o :   H a n c o c k   S t r e e t CN   2 0 2 0 P T A P 9 7 , 6 9 2                 1, 1 0 2 , 3 0 8               1, 2 0 0 , 0 0 0    Co n s t r u c t i o n   o f   a n   e l e v a t e d   w a l k w a y   o v e r   a   r a v i n e   t h a t   i s   a n   80 0 '   g a p   a l o n g   a   p o p u l a r ,   h e a v i l y   u s e d   r o u t e   b y   b o t h   p ed e s t r i a n s   a n d   b i c y cl i s t s . 16 VI C   P a r k i n g   I m p r o v e m e n t 0. 1 1 C N   2 0 1 8 S 80 0 , 0 0 0                        80 0 , 0 0 0               CE N fr o m :   T h a y e r                 t o :   B e n e d i c t 16 Je f f e r s o n   S t r e e t 0. 1 5 C N   2 0 1 8 P TI B 32 9 , 3 0 3                       21 1 , 2 8 1                        54 0 , 5 8 4               CE N fr o m :   Q u i n c y   S t r e e t                   t o :   T y l e r   S t r e e t Si d e w a l k s ,   s h o u l d e r s   a n d   d r a i n a g e   i m p r o v e m e n t s   o n   J e f f e r s o n   St   b e t w e e n   Q u i n c y   a n d   T y l e r   s t r e e t s ,   a n d   t h e n   o n   Q u i n c y   S t   be t w e e n   J e f f e r s o n   a n d   W a s h i n g t o n   s t r e e t s . 16 Di s c o v e r y   R o a d   I 0. 7 4 P E   2 0 2 0 P O T H E R 7 7 0 , 0 0 0                       7 7 0 , 0 0 0             CE N fr o m :   H o w a r d   S t r e e t                 t o :   S h e r i d a n   S t r e e t CN   2 0 2 1 P OT H E R 7 , 5 8 0 , 0 0 0               7, 5 8 0 , 0 0 0    Re b u i l d   r o a d w a y ,   s i d e w a l k s ,   d r a i n a g e ,   s h o u l d e r   i m p r o v e m e n t s ,   bik e   l a n e s 14 Wa s h i n g t o n   S t r e e t   0. 3 0 P E   2 0 2 1 P 3 5 0 , 0 0 0                        3 5 0 , 0 0 0             CE N fr o m :   M o n r o e   S t r e e t           t o :   T a y l o r   S t r e e t CN   2 0 2 2 P 2, 0 0 0 , 0 0 0                  2,000,000        St r e e t s c a p e   i m p r o v e m e n t s ;   n e w   c u r b ,   g u t t e r ,   p a v e m e n t ,   sid e w a l k   r e p air   a n d   r e p la c e m e n t 14 Si m s   W a y   I m p r o v e m e n t s   I I I 1. 6 0 P E   2 0 2 1 P WS D O T 6 0 0 , 0 0 0                       600,000             CE N fr o m :   S h e r i d a n   S t r e e t     t o :   S R   2 0   F e r r y   T e r m i n a l CN   2 0 2 2 P WS D O T 6 , 0 0 0 , 0 0 0               6,000,000        Tu r n   l a n e s ,   s h o u l d e r   i m p r o v e m e n t s ,   i n t e r s e c t i o n   im p r o v e m e n t s ,   b i k e   l a n e s ,   t r a n s i t   p u l l o u t s ,   s i d e w a l k s ,   mit i g at i o n   o f   f e r r y  t r a f f i c   i m p ac t s 14 Si m s   W a y   I m p r o v e m e n t s   I I 0. 2 0 P E   2 0 2 2 P WS D O T 6 0 0 , 0 0 0                       600,000           CE N fr o m :   L o g a n   S t r e e t               t o :   S h e r i d a n   S t r e e t CN   2 0 2 3 P WS D O T 5 , 0 0 0 , 0 0 0               5,000,000           In t e r s e c t i o n   i m p r o v e m e n t s ;   s h o u l d e r   i m p r o v e m e n t s ;   d r a i n a g e ;   tr a n s i t   p u l l o u t s ;   s i d e w a l k s ;   p e d e s t r i a n   c r o s s i n g s ;   s t o r m w a t e r   tr e a t m e n t 14 Si m s   W a y   ( S R   2 0 )   I n t e r s e c t i o n   I m p r o v e m e n t s 0. 1 0 A L L 2 0 2 3 P W S D O T 2 , 0 0 0 , 0 0 0               2,000,000           C E N fr o m :   K e a r n e y   S t r e e t                   t o :   W a s h i n g t o n   S t r e e t In t e r s e c t i o n   i m p r o v e m e n t s 16 Di s c o v e r y   R o a d   I I 0. 7 4 P E   2 0 2 2 P O T H E R 3 0 0 , 0 0 0                       2 0 0 , 0 0 0                        5 0 0 , 0 0 0            C E N fr o m :   C i t y   L i m i t s                           t o :   H o w a r d   S t r e e t C N   2 0 2 3 P O T H E R 2 , 2 0 0 , 0 0 0               30 0 , 0 0 0                        2,500,000           Re b u i l d   r o a d w a y ,   b i k e   l a n e s ,   s i d e w a l k s ,   p a t h w a y ,   t r a n s i t   pu l l o u t s ,   d r a i n a g e ,   i n t e r s e c t i o n   i m p r o v e m e n t s 16 Sa n   J u a n   I m p r o v e m e n t s   I I 0. 7 5 A L L 2 0 2 3 P 1 , 7 0 0 , 0 0 0                  1,700,000           C E N fr o m :   L o p e z   &   S a n   J u a n     t o :   4 9 t h   &   J a c k m a n Gr i n d   a n d   i n s t a l l   n e w   r o a d   s u r f a c e .   R e p l a c e   u t i l i t y   l i n e s .   Si d e w a l k   o n   o n e   s i d e   o n l y . 10123456789 11 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 105 of 172 Si x Ye a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m (2 0 1 8 ‐ 20 2 3 ) Co u n t y   N a m e Jefferson County   Po r t   T o w n s e n d MP O / R T P O : NON/PEN Co .   N o . : 16 Ci t y   N o . : 10 0 5 Fu n d   S o u r c e   I n f o r m a t i o n E x p e n d i t u r e   S c h e d u l e   F u n c t i o n a l   C l a s s P r i o r i t y   N u m b e r Pr o j e c t P r o j e c t   L e n g t h P h a s e P h a s e   S t a r t   Y e a r F u n d i n g   S t a t u s Fe d e r a l   Fu n d   Co d e  F e d e r a l   Fu n d s   St a t e   F u n d   Co d e   S t a t e   F u n d s     L o c a l   F u n d s   1s t 2 n d 3 r d 4 t h 5 t h 6 t h Environment Type RW Required 16 Ha s t i n g s   A v e n u e   I m p r o v e m e n t s 1. 6 0 A L L 2 0 2 3 P 3 , 7 2 5 , 0 0 0                  3,725,000           C E N fr o m :   D i s c o v e r y   R o a d               t o :   C i t y   L i m i t s Sh o u l d e r   w i d e n i n g ,   b i k e   l a n e s ,   p a v e m e n t   o v e r l a y ,   d r a i n a g e   im p ro v e m e n t s 16 La w r e n c e   S t r e e t   I m p r o v e m e n t s 0. 5 0 A L L 2 0 2 3 P 1 , 0 0 0 , 0 0 0                  1,000,000           C E N fr o m :   K e a r n e y   S t r e e t             t o :   H a r r i s o n   S t r e e t Gr i n d ,   b a s e   u p g r a d e ,   r e p a v e ,   s i d e w a l k s ,   s h o u l d e r   im p ro v e m e n t s 16 Ja c k s o n   /   W a l n u t   I m p r o v e m e n t s 0. 4 5 A L L 2 0 2 3 P 5 0 0 , 0 0 0                        500,000              C E N fr o m :   R e e d   S t r e e t                               t o :   W   S t r e e t Sh o u l d e r   i m p r o v e m e n t s ,   o v e r l a y ,   d r a i n a g e   i m p r o v e m e n t s ,   sid e w a l k s 16 Ho w a r d   S t r e e t   /   R a i n i e r   S t r e e t   E x t e n s i o n   I I 0. 6 0 P E   2 0 2 2 P OT H E R 20 0 , 0 0 0                       50 0 , 0 0 0                        700,000           CE N fr o m :   D i s c o v e r y   R o a d           t o :   2 0 t h   S t r e e t CN   2 0 2 3 P OT H E R 2 , 0 0 0 , 0 0 0               4, 0 0 0 , 0 0 0                  6,000,000           Ne w   s t r e e t   e x t e n s i o n 14 Mi l l   R o a d   I n t e r s e c t i o n 0. 0 0 A L L 2 0 2 3 P W S D O T 1 0 , 0 0 0 , 0 0 0           10,000,000        C E Y fr o m :   S R   2 0                                                     t o :   D i s c o v e r y   R o a d In t e r s e c t i o n   i m p r o v e m e n t s 16 A dm i r a l t y   A v e n u e   I m p r o v e m e n t s 0. 1 7 A L L 2 0 2 3 P 7 0 0 , 0 0 0                        700,000              C E N fr o m :   S a n   J u a n   A v e n u e       t o :   F o r t   W o r d e n   S t a t e   P a r k Sh o u l d e r   i m p r o v e m e n t s ,   s i d e w a l k ,   b i k e   l a n e s ,   d r a i n a g e 16 Mo n r o e   S t r e e t   I m p r o v e m e n t s 0. 2 2 A L L 2 0 2 3 P 1 , 0 0 0 , 0 0 0                  1,000,000           C E N fr o m :   W a s h i n g t o n   S t r e e t               t o :   L a w r e n c e   S t r e e t Ad d r e s s   r o a d   s e t t l e m e n t ,   r e ‐ d o   s u b g r a d e ,   r e p a v e 16 Mc P h e r s o n   S t r e e t   I m p r o v e m e n t s 0. 5 7 A L L 2 0 2 3 P 1 , 7 8 0 , 0 0 0                  1,780,000           C E N fr o m :   S i m s   W a y   S R   2 0               t o :   D i s c o v e r y   R o a d Ad d   s i d e w a l k s ,   b i k e   l a n e s 16 Bl a i n e   S t r e e t   I m p r o v e m e n t s 0. 5 0 A L L 2 0 2 3 P 5 0 0 , 0 0 0                        500,000              C E N fr o m :   W a l k e r   S t r e e t                       t o :   T y l e r   S t r e e t Si d e w a l k ,   s h o u l d e r   i m p r o v e m e n t s ,   d r a i n a g e ,   c u r b   a n d   g u t t e r 16 Wa l k e r   S t r e e t   I m p r o v e m e n t s   I I I 0. 1 0 A L L 2 0 2 3 P 50 0 , 0 0 0                        500,000              C E N fr o m :   W a s h i n g t o n   S t               t o :   L a w r e n c e   S t Si d e w a l k s ,   d r a i n a g e ,   r e p a v e 00 No n ‐ M o t o r i z e d   M u l t i   M o d a l   L o o p   T r a i l 1. 9 4 A L L 2 0 2 3 P S T P   ( E ) 1 5 0 , 0 0 0             O T H E R 15 0 , 0 0 0                       20 0 , 0 0 0                        500,000              C E N fr o m :   K e a r n e y   S t r e e t           t o :   D i s c o v e r y   R d Lo o p   t r a i l   a s   i d e n t i f i e d   i n   N o n ‐ M o t o r i z e d   T r a n s p o r t a t i o n   P l a n 19 10 t h   S t r e e t 0. 3 3 A L L 2 0 2 3 P 60 0 , 0 0 0                        600,000              C E N fr o m :   S R   2 0                             t o :   S h e r i d a n Si d e w a l k s ,   b i k e   l a n e s ,   d r a i n a g e ,   s h o u l d e r s 17 9t h   S t r e e t 0. 4 0 A L L 2 0 2 3 P 70 0 , 0 0 0                        700,000              C E N 2212131415161718192021 23 24 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 106 of 172 Si x Ye a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m (2 0 1 8 ‐ 20 2 3 ) Co u n t y   N a m e Jefferson County   Po r t   T o w n s e n d MP O / R T P O : NON/PEN Co .   N o . : 16 Ci t y   N o . : 10 0 5 Fu n d   S o u r c e   I n f o r m a t i o n E x p e n d i t u r e   S c h e d u l e   F u n c t i o n a l   C l a s s P r i o r i t y   N u m b e r Pr o j e c t P r o j e c t   L e n g t h P h a s e P h a s e   S t a r t   Y e a r F u n d i n g   S t a t u s Fe d e r a l   Fu n d   Co d e  F e d e r a l   Fu n d s   St a t e   F u n d   Co d e   S t a t e   F u n d s     L o c a l   F u n d s   1s t 2 n d 3 r d 4 t h 5 t h 6 t h Environment Type RW Required fr o m :   M c P h e r s o n                   t o :   S h e r i d a n Si d e w a l k s ,   b i k e   l a n e s 16 12 t h   S t r e e t 0. 3 8 A L L 2 0 2 3 P 70 0 , 0 0 0                        700,000              C E N fr o m :   L a n d e s                                               t o :   S h e r i d a n Si d e w a l k s ,   s h o u l d e r s ,   d r a i n a g e   i m p r o v e m e n t s 16 Ch e r r y   /   R e d w o o d   I m p r o v e m e n t s 0. 8 0 A L L 2 0 2 3 P 1 , 0 0 0 , 0 0 0                  1,000,000           C E N fr o m :   F   S t                                             t o :   W   S t Sh o u l d e r   i m p r o v e m e n t s ,   o v e r l a y ,   d r a i n a g e   i m p r o v e m e n t s 16 Di s c o v e r y   R o a d   I m p r o v e m e n t s   I I I 0. 7 0 P E   2 0 2 3 P TI B 35 0 , 0 0 0                       50 , 0 0 0                            400,000              C E N fr o m :   H a s t i n g s   A v e n u e         t o :   1 9 t h   S t r e e t CN   2 0 2 3 P OT H E R 1 , 6 0 0 , 0 0 0               1,600,000           Re b u i l d   r o a d w a y ,   s h o u l d e r   i m p r o v e m e n t s ,   b i k e   l a n e s ,   sid e w a l k s ,   d r a i n a g e ,   i n t e r s e c t i o n   i m p r o v e m e n t s 16 49 t h   S t r e e t   /   C o o k   A v e   I m p r o v e m e n t s 2. 0 0 A L L 2 0 2 3 P 1 , 2 0 0 , 0 0 0                  1,200,000           C E N fr o m :   J a c k m a n   A v e n u e         t o :   C i t y   L i m i t s Sh o u l d e r   w i d e n i n g ,   d r a i n a g e   i m p r o v e m e n t s ,   p a v e m e n t   o v e r l a y ,   bik e   a n d   p e d e s t r i a n   a c c o m m o d a t i o n s 16 W S t r e e t   I m p r o v e m e n t s 0. 7 0 A L L 2 0 2 3 P 8 0 0 , 0 0 0                        800,000              C E N fr o m :   W a l n u t   S t r e e t                         t o :   A d m i r a l t y   A v e n u e Sh o u l d e r   w i d e n i n g ,   o v e r l a y ,   d r a i n a g e   i m p r o v e m e n t s ,   s i d e w a l k s 16 La w r e n c e 0. 4 6 A L L 2 0 2 3 P 5 0 0 , 0 0 0                        500,000              C E N fr o m :   M o n r o e                                               t o :   H a r r i s o n Ro a d   r e b u i l d 16 Wa s h i n g t o n   I I 0. 1 1 A L L 2 0 2 3 P 5 0 0 , 0 0 0                        500,000              C E N fr o m :   H a r r i s o n                                             t o :   P i e r c e Ro a d   r e b u i l d 16 Mo n r o e 0. 3 0 A L L 2 0 2 3 P 5 0 0 , 0 0 0                        500,000              C E N fr o m :   R o o s e v e l t                                       t o :   R e e d Ro a d   r e b u i l d 16 Sh e r i d a n   S t r e e t 0. 2 5 A L L 2 0 2 3 P 70 0 , 0 0 0                        700,000              C E N fr o m :   1 0 th  S t                                                       t o :   1 5 th  S t Ro a d   r e b u i l d 33 6/7/2017 25 26 27 28 29 30 31 32 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 107 of 172 C i t y o f P o r t T o w n s e n d 2 0 1 8 B u d g e t P a g e 1 0 8 o f 1 7 2 CITY OF PORT TOWNSEND, WASHINGTON FINANCIAL POLICIES The City Council adopted updated “Finance and Budget Policy Guidelines” in September 19, 2016 (Resolution 16-042). These policy guidelines lay the framework for fund reserves, revenue policies, transfers and inter-fund loans, general expenditure policies, debt management, grant administration and budget and long-range forecasting. Fund Reserve Policy Fund Reserve targets were adopted to allow the City to maintain sufficient working capital and to weather emergencies or unexpected revenue declines. The 2018 budget was developed to ensure that ending fund balance amounts would align with the City Council Fund Balance Reserve Policy. The supplemental budget for 2017 includes a transfer of $50,000 from the Community Services Fund to the Contingency Fund. In late October 2016, Mountain View facility boilers required emergency repairs. The funds to pay for the repairs were drawn from the Contingency Fund. That transfer brought the Contingency Fund below the 2.0% reserve target. The transfer back to the Contingency Fund from the Community Services Fund in the 2017 supplemental budget brings the Fund back into compliance with the Financial Policies. The financial policies indicate the fund target for Public Works Administration as 2-3% of expenditures. However, this fund is an internal service fund, providing administrative services to Streets, the Water/Sewer utility, the Storm utility and the Equipment Rental & Replacement funds. An internal service fund would typically not have a substantial fund reserve. A recommendation to change the fund reserve requirement to “sufficient to meet obligations” will be presented during the next financial policy updates (slated for 2018). Additionally, the Water Sewer Fund is slightly under its fund reserve target of 60 days operating expenses. An expense reduction will be made in the final proposed budget to ensure that the reserve target is met. The City is evaluating the Equipment Rental & Replacement (ERR) fund model to determine the best means to move forward with an appropriate structure to capture revenue needed to replace city fleet and IT equipment not only in 2017 and 2018 but over the long term. The 2018 contributions for city fleet and IT equipment cover operating and maintenance costs of the fund as well as a small contribution towards equipment replacement. During the first half of 2018, staff will develop policy framework for the fund along with a replacement schedule for equipment and vehicles. The following reserve balance scorecard shows the fund balance reserve results: City of Port Townsend 2018 Budget Page 109 of 172 COUNCIL POLICY FUND TARGET 2015 Actual Fund 2016 Actual Fund 2017 Estimated Fund 2018 Budget Fund FUNDS (Policy Adopted August, 2016)Reserve % Reserve % Reserve % Reserve % Operating Funds General Fund 8 - 15% of operating revenue 13.0% 17.2% 16.9% 17.1% Contingency Fund No less than 2% of operating revenue 2.0% 1.5% 2.0% 2.0% Street Fund 2 - 3% of expenditures 28.9% 42.2% 35.4% 39.7% Library Fund 5 - 8% of property tax revenue 15.1% 20.1% 21.1% 19.0% Real Estate Excise Tax Fund Sufficient to meet obligations Meets Meets Meets Meets Lodging Tax Fund Sufficient to meet obligations Meets Meets Meets Meets Fire & EMS Services Fund Sufficient to meet obligations Meets Meets Meets Meets Housing Trust Fund Sufficient to meet obligations Meets Meets Meets Meets Community Development Block Grant Fund Sufficient to meet obligations Meets Meets Meets Meets Community Services Fund 2 - 3% of expenditures 7.7% 7.5% 3.7% 3.6% Equipment Rental & Replacement Fund Sufficient to meet obligations Self-Insurance Unemployment Fund Sufficient to meet obligations Meets Meets Meets Meets Firemen's Pension Fund Sufficient to meet obligations Meets Meets Meets Meets Enterprise Funds Public Works Admin Fund 2 - 3% of expenditures 12.3% 11.4% 0.1% 0.2% Water Sewer Fund 60 days of operating expenses 186 247 189 62 Stormwater Fund 60 days of operating expenses 76 45 122 63 Capital, Debt, & Trust Funds General Capital Improvement Fund Sufficient to meet obligations Meets Meets Meets Meets Street Vacation Fund Sufficient to meet obligations Meets Meets Meets Meets Street Capital Improvement Fund Sufficient to meet obligations Meets Meets Meets Meets 2015 Bond Fund Sufficient to meet obligations Meets Meets Meets Meets 2017 Bond Fund Sufficient to meet obligations N/A N/A Meets Meets System Development Charges Fund Sufficient to meet obligations Meets Meets Meets Meets Transmission Line Replacement Fund **Sufficient to meet obligations Meets Meets Meets Meets G.O. Debt Service Fund Sufficient to meet obligations Meets Meets Meets Meets 78 Water Sewer Revenue Bond Fund Sufficient to meet obligations Meets Meets Meets Meets Utility Construction Fund Sufficient to meet obligations Meets Meets Meets Meets Utility Debt Reserve Sufficient to meet obligations Meets Meets Meets Meets Stormwater Capital Fund Sufficient to meet obligations Meets Meets Meets Meets Engineering Service Fund Sufficient to meet obligations Meets Meets Meets Meets Refundable Deposits Sufficient to meet obligations Meets Meets Meets Meets Agency Funds Sufficient to meet obligations Meets Meets Meets Meets Golf Course Fund Sufficient to meet obligations Meets Meets Meets Meets Memorial Fund Sufficient to meet obligations Meets Meets Meets Meets 2015 Actual 2016 Actual 2017 Estimated 2018 Budget Annual Debt Service as % of Revenue Less than 15%8.5% 10.1% 10.5% 10.7% 2015 Actual 2016 Actual 2017 Estimated 2018 Budget Operating revenues 50% or more than pool operating expenses 45.9% 41.6% 42.7% 46.9% Parks & Pool Fees GO Debt Service as a % of General Government Revenue City of Port Townsend Ending Fund Balance Scorecard STATUS OF PERFORMANCE COMPARED TO FINANCIAL POLICIES Under Review City of Port Townsend 2018 Budget Page 110 of 172 OVERHEAD INDIRECT COST RECOVERY POLICY The City adopted a policy that allocates the indirect overhead costs, from the General Fund to other funds. Consistent with the prior three years, City staff used the cost recovery model developed by FCS Consultants to identify city-wide overhead costs, which include Council, City Manager, City Clerk, Human Resources, City Attorney, Finance and Facility related overhead costs. The model uses actual costs from two years previous; that is, the 2017 allocation was based on 2015 historical costs and the 2018 budget allocation was based on 2016 historical costs and activities. Allocations to funds are based on pre-determined allocation factors. The chart below represents the City-wide overhead costs for 2018 and the associated allocation factors that determine how much each receiving fund is charged for overhead services. Funds that had increases in allocation statistics, such as an increase in full time equivalents (staff positions), increase in total expenditures, or an increase in department related council agenda bills will receive a greater share of the overhead allocation. Conversely, funds that use less administrative resources receive a smaller portion of allocated costs. Allocation statistics are reviewed each year for appropriateness and updated as necessary. Total Citywide Allocable Costs Allocation Factor 011 Mayor & Council 96,326$ Council Bills 012 City Manager 309,134 50/50 Split: Actual Expenditures & FTEs 013 City Attorney - Civil 233,930 33/33/33 Split: Actual Expenditures, FTEs, & Council Bills 041 Finance - General 307,292 Actual Expenditures 041 Finance - AP 80,837 AP Invoices 015 Payroll 120,248 FTEs 015 Human Resources 201,077 FTEs 080 City Clerk - Council Support 150,119 Council Bills 080 City Clerk - General Other 38,430 Vehicle Insurance 080 City Clerk - Records Management 52,229 Records Count FD 199 Community Services - City Facilities 381,871 Square Feet by Building Liability Insurance 248,677 FTEs Property Insurance 57,399 Value of Insured Property Vehicle Insurance 2,228 # of Vehicles TOTAL 2,279,796$ Indirect cost pools Indirect Cost Pools and Allocation Factors City of Port Townsend 2018 Budget Page 111 of 172 A comparison of the 2018 and 2017 overhead allocation charged to funds is shown on the following table: The increase in O/H allocation of $207,452 from 2017 to 2018 is largely the result of capital project funds which is not expected to continue in the long term. In addition, the revenue increase to the General Fund from the Community Services Fund is offset by an increased operating transfer back to the Community Services Fund to cover costs in Parks, Facilities & Maintenance. Adopted Cost Recovery Budget 2017 2018 Proposed Overhead Allocation Charges Increase / (Decrease) FD 110 Street 51,127$ 45,642$ (5,485)$ FD 120 Library 197,968$ 214,972$ 17,004$ FD 140 Public Works Administration 55,942$ 58,810$ 2,868$ FD 150 Lodging Tax 9,361$ 12,838$ 3,477$ FD 199 Community Services 148,105$ 225,017$ 76,912$ FD 301 General CIP Projects 61,676$ 25,841$ (35,835)$ FD 305 CIP Street 44,284$ 39,489$ (4,795)$ FD 411 Water Sewer Fund (excl. Utility Billing)279,704$ 275,370$ (4,334)$ FD 411 Finance - Utility Billing 58,078$ 55,294$ (2,784)$ FD 412 Storm Fund 41,209$ 50,800$ 9,591$ FD 415 Water Sewer CIP 128,958$ 276,590$ 147,632$ FD 417 1956 Trans Line Replacement 15,159$ 2,304$ (12,855)$ FD 500 Equipment Rental - Fleet 29,990$ 44,269$ 14,279$ FD 500 Equipment Rental - IT 25,057$ 27,129$ 2,072$ FD 555 Engineering Services 83,175$ 84,211$ 1,036$ FD 610 Firemen's Pension and Relief 2,087$ 1,414$ (673)$ FD 623 Golf Course 2,698$ 5,419$ 2,721$ Total Overhead Charged to Funds 1,234,578$ 1,445,408$ 210,830$ Total Calculated Overhead 1,832,998$ 2,040,450$ 207,452$ City Department Funds Charged with Overhead / Indirect Costs City of Port Townsend 2018 Budget Page 112 of 172 Resolution 16-042 RESOLUTION NO. 16-042 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, ESTABLISHING FINANCE AND BUDGET POLICY GUIDELINES AND REPEALING RESOLUTION 14-042 WHEREAS, the City Council adopted a set of Financial Policies and Budget Guidelines relating to Revenues, Expenditures, Reserves and general Budget goals and guidelines in Resolution 99-051; and WHEREAS, the City Council adopted an updated set of Financial Policies and Budget Guidelines relating to Revenues, Expenditures, Reserves and general Budget goals and guidelines in Resolution 14-042; and WHEREAS, the State Auditor's Office and the Government Finance Officers Association recommends the adoption of Financial Policies and the periodic updates of these policies; and WHEREAS,the City's Finance and Budget Committee has reviewed the Comprehensive Financial Policies at its June 26th and July 28th meetings; and WHEREAS,the City's Finance and Budget Committee recommend adoption of these updated policies; NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Port Townsend, Washington, as follows: Section 1. Resolution 14-042 is repealed and replaced by the attached Finance and Budget Policy Guidelines (Exhibit A to this Resolution); Section 2. The Annual Budget Ordinance and Supplemental Ordinances shall be considered as a part of and implementing document for the City's Finance and Budget Policy Guidelines. ADOPTED by the City Council of Port Townsend, WA at a regular meeting thereof, held this 19th day of September, 2016. e orah S. Stin Mayor Attest: Approv s form: Joanna Sanders, CMC Steven L. Gross City Clerk City Attorney City of Port Townsend 2018 Budget Page 113 of 172 Resolution 16-042 Exhibit A Page I of16 City of Port Townsend Comprehensive Financial Management Policy Guidelines Adopted September 19, 2016 City of Port Townsend 2018 Budget Page 114 of 172 Resolution 16-042 Exhibit A Page 2 of 16 Comprehensive Financial Management Policies Index I. FINANCIAL POLICY GUIDELINES ..................................................................................3 Il. ORGANIZATION ................................................................................................................3 III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING......................................4 IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES............................................6 V. REVENUE POLICIES .........................................................................................................8 VI. OVERHEAD COST RECOVERY (COST ALLOCATION)...........................................10 VII. GENERAL BUDGET POLICIES ...................................................................................I I VIII. FINANCIAL PLANNING POLICIES...........................................................................12 IX. ENTERPRISE FUNDS .....................................................................................................13 X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES ..............................................13 XI. DEBT MANAGEMENT POLICY ...................................................................................13 XII. PURCHASING POLICY.................................................................................................15 XIII. GRANTS MANAGEMENT POLICY...........................................................................15 City of Port Townsend 2018 Budget Page 115 of 172 Resolution 16-042 Exhibit A Page 3 of 16 I. FINANCIAL POLICY GUIDELINES The financial policies outlined in this document have been developed in accordance with the Government Finance Officers Association's "Best Practices". These policy guidelines are intended to aid the City Council and City management in financial decision making. These policy guidelines also provide a means to test short term financial and budget decisions to help ensure the City is able to meet its immediate and long term financial service objectives and obligations. The City of Port Townsend is accountable to its citizens for the use ofpublic funds. Municipal resources must be wisely used to ensure adequate funding for services, public facilities and infrastructure needed to meet the community's present and future needs. These policies are designed to help safeguard the fiscal stability required to achieve the City's goals and objectives. The City's Comprehensive Financial Policies have the following objectives: To guide the City Council and management policy decisions that have significant financial impact. To set forth operating principles which minimize the cost of government and financial risk to the City. To employ balanced, consistent and fair revenue policies that provide adequate funding for desired programs. To promote sound financial management by providing accurate and timely information on the City's financial condition. To protect the City's credit rating and provide for adequate resources to meet the provision of the City's debt obligations for all municipal debt. To ensure the legal use of financial resources through an effective system of internal controls. II. ORGANIZATION The City provides municipal services for its citizens, including protection of life and property, public health and welfare, and improved quality of life. The City Council deems it a high priority to deliver municipal services in the manner consistent for all citizens, and with maximum efficiency and financial prudence. The Council, as the legislative and governing body, sets the City's Financial and Budget Policy Guidelines, and through its Finance and Budget Committee, monitors and reviews the City's overall financial performance. The City Manager, as the City's Chief Executive Officer and Chief Budget Officer, is responsible to the Council for managing City operations and program services, and preparation of the City's Annual Budget consistent with established Financial and Budget Policy Guidelines. City of Port Townsend 2018 Budget Page 116 of 172 Resolution 16-042 Exhibit A Page 4of16 The Director of Finance and Administrative Services, as the City's Chief Financial Officer and Chief Auditing Officer, is responsible to the City Manager for the preparation of accurate and timely financial and budget reporting. Additional responsibilities include human resource and information technology administration, general accounting, business license/tax administration and utility billing operations, as well as policy advice to the City Manager and Council. The Department Heads are responsible to the City Manager for Department Operations and Capital Project management, purchasing and grants administration. Department Heads monitor related revenue performance and expenditure control with the assistance of the Finance Department. The City must prioritize its services and, should revenues become constrained, the following services are considered priorities in the following general order: 1. Public Life, Health and Safety: Police, fire, emergency medical services; building inspections; and traffic control; water, sewer, and storm drainage service and streets infrastructure maintenance. 2. Legal Mandates: Accounting/auditing/financial reporting; land-use planning; required staff certifications and training. 3. City Facilities and Property: maintenance of parks, buildings, public rights of way, and City equipment(including information technology equipment); 4. Council and community goals, both annual and long-range, including strategic plan goals. III. ACCOUNTING,AUDITING AND FINANCIAL REPORTING The City will maintain a system of financial monitoring, control and reporting for all operations and funds in order to provide effective means of ensuring that overall City goals and objectives are met. Accounting Records and Reporting_—The City will maintain its accounting records in accordance with state and federal regulations. Budgeting, accounting and reporting activities will conform to the Budgeting, Accounting and Reporting System (BARS) for Governments as prescribed by the Washington State Auditor. The City maintains its accounting records on a cash basis and adheres to the cash basis BARS manual. Capital Assets—As a cash basis entity, the City records and reports only inflows and outflows of cash. When a capital asset is purchased the entire expenditure is recorded when the cash is expended and depreciation is not recorded. The City considers capital assets to be real and intangible assets above $5,000 that have an anticipated life of one year or more. Capital assets are tracked by the Finance Department as a fixed asset inventory list. Items that are no longer needed or no longer functional will be disposed according to the City surplus policy and state law. City of Port Townsend 2018 Budget Page 117 of 172 Resolution 16-042 Exhibit A Page S of 16 Capital assets that are purchased with grant funds may be subject to additional compliance requirements. The department obtaining the grant is responsible for understanding any compliance requirements related to acquiring, inventorying, tracking and disposing of assets obtained through these types of funds. Small and Attractive Assets - The City identifies small and attractive assets as items with a cost greater than$300 but less than$5,000. These items have a life expectancy of more than one year AND are not likely to be immediately missed upon disappearance. These items are generally mobile in nature and may be easily transported from the workplace. Some exceptions to the $300 minimum include tablets,phones and other lower cost items that have ongoing maintenance or service costs associated with them. Department Heads are accountable for the security of these items and are responsible for following the Small and Attractive Assets Policy and Procedures that have been adopted by Council. The Finance and Administrative Services Director has oversight responsibility for this policy and the associated inventory of these items. Auditing—The State Auditor will perform the City's financial, federal single audit and accountability/compliance audits in accordance with state and federal laws. Results of the audit will be provided to the Council in a timely manner. Cash Management—The Finance &Administrative Services Director will ensure that cash management systems are developed to ensure accurate and timely accounting for all cash and security of all cash assets. Careful financial control of the City's daily operations is an important part of the City's overall fiscal management practices. Achieving adequate cash management and investment control requires sound financial planning to ensure that sufficient revenues are available to meet the current expenditures of any operating period. The City's cash management and investment guidelines are as follows: The City will strive to maximize the return on its investments, with the primary objective ofpreserving capital and prudent investment practices, including diversification. Investments will be made in accordance with the guidelines established by the Washington State Statutes and based upon the following order of priorities: 1) Legality; 2) Safety; 3) Liquidity; and 4) Yield. The City will maintain a cash management program, which includes internal control practices for collection of accounts receivable, disbursement of funds, and prudent investment of its available cash. As permitted by law and City ordinances and to maximize the effective investment of assets, all funds needed for general obligations may be pooled into one account for investment purposes. The income derived from this account will be distributed to the various funds based on their average balances on a periodic basis. City of Port Townsend 2018 Budget Page 118 of 172 Resolution 16-042 Exhibit A Page 6 of 16 The Finance & Administrative Services Director will periodically furnish the City Manager and Council with a report that shall include the amount of interest earned to date. At least annually, a report summarizing investment activity and rate of return will be provided. Sufficient cash shall be maintained to provide adequate funds for current operating expenditures. IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES The City's accounting and budgeting systems are organized and operated on a fund basis. Funds are accounting entities used to record revenues and expenditures. By definition, balanced funds mean that total revenues equal total expenditures. The budgeted funds are grouped into categories: General, Special Revenue, Debt Service, Capital Projects, Enterprise, and Internal Service. The following provides a brief description of the fund types and reserve guidelines for each fund. The numbers in parentheses represent the BARS manual fund series numbering scheme. GENERAL FUND (010) -- This is the primary operating fund or current expense fund of the City. To maintain the City's credit rating and meet seasonal cash flow,the budget shall provide for an anticipated undesignated fund balance between 8% and 15% of estimated annual revenues for general government fund types. The fund balance shall be exclusive of all reserves not anticipated to be readily available for use in emergencies and contingencies. Should the fund balance fall below 8% of revenues, a plan for expenditure reductions and/or revenue increases shall be submitted by the City Manager to the Council. If, at the end of a fiscal year, the fund balance falls below 8%, then the City shall rebuild the balance within a period not to exceed three fiscal years. GENERAL FUND COUNCIL RESERVE (Included in the General Fund)—In addition to the Fund balance and the Contingency Fund, the budget for the General Fund shall provide for a"Council Reserve" equivalent to approximately 1% of estimated operating revenues in the General Fund(010). Only the General Fund shall maintain a Council Reserve."The Council Reserve is established to provide for non-recurring community requests or unanticipated needs deemed necessary by Council. The Council Reserve shall be suspended during times of significant economic downturn, especially during years when the General Fund ending fund balance falls below 5%. The Council Reserve is a budgeted appropriation expected to be specifically allocated at the Council's discretion. SPECIAL REVENUE FUNDS (101-199) -- These funds account for revenues derived from special taxes, grants or other restricted sources designed to finance particular activities. Apart from any unrestricted General Fund contributions to a Special Revenue Fund, the unexpended ending fund balances carry over year to year and should retain City of Port Townsend 2018 Budget Page 119 of 172 Resolution 16-042 Exhibit A Page 7 of16 enough revenue to cover operating cash flow and anticipated major project or program obligations of the fund. Of these funds, the Street, Library, and Community Services funds are of an operations nature. The Street and Community Services Funds reserve balance will be equivalent to 2-3% of fund expenditures. The Library Fund reserve is set at 5-8% of Library property tax revenue. Other Special Revenue Funds are more cyclical or project related and only need retained ending fund balances or transfers in to cover anticipated obligations: Drug Enforcement, Lodging Tax, Fire/EMS, Affordable housing, and CDBG Grants. CONTINGENCY (102)—While classified as a Special Revenue Fund, the City's Contingency Fund is more of a strategic reserve to meet emergency conditions or to help maintain essential services during periods of economic downturn. Each fund should retain enough in its own Ending Fund Balance Reserves to offset minor non-recurring or unanticipated expenses during the budget year. The City's Contingency Fund is intended for major events and should be maintained at no less than 2% of the General Fund annual operating revenues. If the contingency falls below 2% of operating revenue, the City will initiate a plan that will restore the balance to the required level over a three year period. DEBT SERVICES FUND (200)—These funds are used to pay general government debt. The City shall retain or transfer in funds sufficient to cover the annual debt service obligations, and retain such"coverage" amounts to comply with bond covenants or other loan restrictions. CAPITAL PROJECTS FUNDS (300)—These funds are established for the acquisition or construction of general government(non-utility) capital improvements. Ending Fund Balance Reserves should be maintained at levels sufficient to cover anticipated annual expenditures with transfers in from supporting funds (General, REET, etc.) to cover project needs. ENTERPRISE FUNDS (400)—These funds are the proprietary or"business-like" funds for operations providing services to the general public supported primarily through user's fees (Water, Sewer, Stormwater, and Utility Revenue Bond). The Ending Fund Balances of these funds should be equal to or greater than 60 days of operating expenditures and any additional amounts needed to build towards future project cash or debt payment needs. To the extent that the reserved Fund Balance and operating cash flow are not adequate to fund needed utility system improvements, additional rate increases or surcharges may be adopted by Council. Included in the Enterprise funds are Debt Service Reserve Funds, Utility Capital Project Funds and System Development Fund. Revenue bonds may be issued by the Enterprise Funds. Investors may require additional lending requirements or covenants. The ending fund balance of the Enterprise Funds should include a reserve to cover any additional covenant requirements City of Port Townsend 2018 Budget Page 120 of 172 Resolution 16-042 Exhibit A Page 8of16 INTERNAL SERVICE FUNDS (500)—These funds are also internal "business-like" funds for operations providing services to other City departments (funds) on a direct cost- reimbursement basis (e.g. Equipment Rental including Information Technology services and equipment, and internal Engineering Services). Fund balances should break even, after set aside of funds for future capital equipment replacements. FIDUCIARY FUNDS (600)—These funds account for assets held by the City as a trustee or as an agent on behalf of others. Ending Fund Balances and any transfers in should be maintained consistent with fund restrictions. ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY The following is a summary of the reserves guidelines. Guidelines will be reviewed annually as a part of the Budget process: General Fund........................................... 8-15% of operating revenue Exclusive of the Council Reserve budgeted within the General Fund) Library.....................................................5-8%of property tax Street .......................................................2-3% of expenditures Community Services...............................2-3% of expenditures Other Special Revenue Funds................. Sufficient to meet obligations Contingency ............................................No less than 2% of operating revenue Debt Service............................................ Sufficient to meet obligations General Capital........................................ Sufficient to meet obligations Enterprise Funds......................................60 days of operating expenditures System Development Charges Fund (Enterprise)....Sufficient to meet obligations Internal Service .......................................2-3% of operating revenue Fiduciary Funds....................................... Sufficient to meet obligations The undesignated General Fund Balance (the balance not tied to a known project) will be maintained at a level that provides the City with sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City should not use the undesignated General Fund Balance to finance recurring operating expenditures. Annual General Fund revenues should be equal to or greater than annual regular operating expenditures. General Fund revenues will be used for general government, street and community service programs only. General Fund revenue for other purposes will require approval by the City Council. General Fund revenues will not be used to subsidize utility or enterprise operations, which will be self-supporting through user rates. V. REVENUE POLICIES City of Port Townsend 2018 Budget Page 121 of 172 Resolution 16-042 Exhibit A Page 9 of16 General Revenue Policies -The City will strive to maintain a diversified and stable revenue system to shelter the government from short-run fluctuations in any one revenue source and ensure its ability to provide ongoing service. Restricted revenue shall only be used for the purposes legally permissible and in a fiscally responsible manner. Programs and services funded by restricted revenue will be clearly designated as such. One-time revenues shall support one-time expenditures. County, state or federal funding will be used to finance only those capital improvements that are consistent with the capital improvement plan and local government priorities, and whose operation and maintenance costs have been included in.operating budget forecasts. Enterprise Fund Revenue Policies—Enterprise funds will be operated in a manner that maintains a minimum ending fund balance that is not less than 5-8% of total operating revenues. Utilities will be self-supporting through user rates and charges. Utility user charges for each of the City utilities will be based on cost of service (i.e., set to full support the total direct, indirect, and capital costs) and established so that the operating revenues of each utility are at least equal to its operating expenditures and annual debt service obligations. The user rates of a utility shall be designated so that a portion covers replacement of the utility's facilities. Fund balances may be used to temporarily offset rate increases, after sufficient funds have been accumulated for identified capital improvement needs or alternative finding secured. Fees and Charges (Non-Utility)—All fees for licenses, permit, fines, and other miscellaneous charges shall be set to recover the City's expense in providing the attendant service. Average cost or actual cost methodology may be used. These fees will be reviewed periodically and will be incorporated into the budget process for possible action by Council. Where the City has authority to set or adjust fees and charges, the fee adjustment will be benchmarked against the change in the Seattle-Tacoma-Bremerton Urban Wage Earners Consumer Price Index for the twelve month period ending June 30, or other applicable index or measure as determined by the Council. However, fees and charges for services will generally be set to recover the actual cost of service delivery. Where direct beneficiaries of a city program or services can be identified, fees will be established to recover the costs of that program or service. Fees will also be set in a manner that protects tax payers from subsidizing special service users. A fee shall be charged for any service that benefits limited interests within the community, except for human needs type services to persons with limited ability to pay. City of Port Townsend 2018 Budget Page 122 of 172 Resolution 16-042 Exhibit A Page 10 of 16 Rental fees will be established to recover full cost of use of the property or facility. Some services provide greater benefit to the community. When a greater community benefit is identified, the Council may choose to subsidize, either whole or in part, such services. Park and Pool Fees–The Pool division will strive to recover 50% of Pool costs by generating revenues through special programs, fees, charges, donations and/or designated use of City-operated facilities. Through a volunteer recruitment program, the Parks will seek to minimize the subsidy required for partial and minimum fee support programs. Solicitation of funds through donations, fund raising events, non-traditional sources, and various other modes will be encouraged by the City through its park and pool user groups. Funds collected for any special purpose shall be earmarked for that purpose. VI. OVERHEAD COST RECOVERY (COST ALLOCATION) As provided in the State Auditor's Office guidelines, "Cost allocation is a method to determine and assign the cost of central services to the internal-government users of those services. Cost allocation thereby enables local governments to more accurately account for the complete cost ofthe services it provides to the public—and to better assess the fees it should charge them." Included in cost allocation are direct costs (not otherwise charged to budget units) and indirect costs. Direct Costs are those costs that can be specifically identified with a particular service or unit if not already charged directly (e.g. facilities,janitorial, etc.) Indirect Costs are costs incurred for common or joint purposes, benefiting more than one unit, not readily assignable to a specific unit(e.g. legal, human resources, administration, clerk, etc.). The term"allocation" implies that there is no overly precise method available for direct charging a cost to a unit, so the City is using the most appropriate method available for doing so. However, a cost allocation plan should be designed and used to provide a reasonable, consistent and equitable means to allocate costs. Inequitable charges result in questionable charges to grant, utilities and restricted funds. For grant purposes, costs that benefit the public at large cannot be included and should follow the OMB A-87 and/or 2CFR Part 200 guidelines. The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25, 2014. In addition to using the overhead cost recovery model to assess the appropriate amount of overhead to utilize for establishing user fees, the model will be used to apply charges to Departments/Funds for City-wide overhead indirect cost recovery where allowed Council, City Manager, City Clerk, City Attorney and Finance). City of Port Townsend 2018 Budget Page 123 of 172 Resolution 16-042 Exhibit A Page I1 of 16 The Council may authorize waiver of the overhead cost-recovery in all or part if Council determines doing so will provide a general benefit to the citizens,taxpayers or utility rate payer. If a portion of the overhead cost-recovery is waived, the General Fund must absorb these costs; waived costs may not be absorbed by or reallocated to a Special Revenue or Enterprise Fund. VII. GENERAL BUDGET POLICIES Annual Budget—The annual operating and capital budget will be developed consistent with state law and in a manner that encourages early involvement with the Council and the community. In general, budgeted revenues must meet or exceed budgeted appropriations each year. Current year operating expenses, maintenance costs and direct and indirect costs of services provided will be covered by current year revenues. One time expenditures may be appropriated if one time revenues or excess fund balance (in excess of reserve requirements) are available. The City budget appropriations are adopted at the fund level. Department heads are responsible for preparing a budget that reflects realistic expense projections and that adhere to guidelines within this policy document. Expense (Appropriation) Policies-Operating expenditures will be budgeted at a level that will be supported by annual operating revenues. Staffing Budget—Salary and benefit costs are the City's most significant operating expense. The City will strive to provide a total compensation package that is comparable to other cities and similar type positions within the same labor market or other cities of a similar size with comparable type and quality services in order to recruit and retain high quality staff. The City Manager's proposed budget will identify staffing levels and provide justification for any increases or decreases in overall City staffing. Union Contract negotiations may impact budget expenditures annually. However, if a collective bargaining agreement is, or will be, under negotiation, a specific amount will not be included in the budget from potential wage adjustments resulting from the negotiation, other than a base COLA adjustment. This is to protect the City from any claims of not"bargaining in good faith". Funding for unknown contract terms must be considered in balancing ongoing revenues with ongoing expenses. Equipment Replacement & Maintenance - Equipment replacement and maintenance projections will be updated each year. Replacement of items with a cost in excess of 5,000 will be reviewed to time such expenditures at stable intervals to preserve cash flow, when possible. Deferment of regular repair and maintenance will not be used to balance the budget. City of Port Townsend 2018 Budget Page 124 of 172 Resolution 16-042 Exhibit A Page 12 of 16 Training and Travel—City employees or others on official City business or training may be required to travel outside the City to conduct their business or training for the City. City employees and officials will be reimbursed for reasonable and customary expenses incurred in the conduct of their business for the City, including food, lodging and travel expenses while away, excluding any expenses for personal entertainment or alcoholic beverages, as provided in the City's Personnel Policies Manual for business or training travel. Such training or travel shall be as provided either specifically or generally in the annual budget. Training is seen as an investment in maintaining the certifications and skills ofthe City's employees. At least 1% of the department's budgeted salary expense will be allocated for certifications and skills training. The City will also include a targeted amount of 1% of City-wide salaries for organizational development and process improvement. Investments that Forestall Adding Permanent Staff- Since personnel-related expenditures represent the largest portion of the City's budget, funding of technology or process improvements that increase efficiency and effectiveness of the delivery of City services should receive priority funding. Budget Monitoring- The Finance & Administrative Services Director will maintain a system for monitoring the City's budget performance. This system will provide timely information to Department Heads and the City Manager in order to ensure accuracy of financial data and compliance with budget appropriations. The Council will receive (at a minimum) quarterly reports regarding fund level revenues and expenditure performance compared to budget. Significant financial issues that need to be addressed between regular monitoring reports will be provided to Council as warranted. The Finance Director will monitor unanticipated needs or emergency expenditures and prepare budget amendments in compliance with State Law. VIII, FINANCIAL PLANNING POLICIES FINANCIAL FORECAST—The City will develop a 5-year Financial Plan and Forecast Model based on these financial policy guidelines and a best estimate of likely revenues and expenditures. The model will be used to test the policies against likely surrounding economic conditions. The model will be used for long-range financial planning and is not a replacement for budgeting. The City's financial planning will include the current year budget plus five additional years of projected data. The City may elect to extend its planning horizon further if conditions warrant. City of Port Townsend 2018 Budget Page 125 of 172 Resolution 16-042 Exhibit A Page 13 of 16 The long range financial plan operating revenues and expenses will include data for the General Fund, Contingency Fund, Library Fund and Community Services Fund. In addition to ongoing revenues and expenses,this forecast will utilize assumptions that forecast general obligation debt and general fund contributions to capital projects. The long range financial plan should present trends and projections in key financial indicators, such as: Revenues and expenses per capita including nominal and inflation adjusted data. Staffing levels per 1,000 population: total and by major department. Projected annual growth rates of revenues and expenses including personnel costs. The long range financial plan may include comparisons to other cities and benchmarks, recognizing that the data for comparable cities may reflect differences in service delivery, financial structure and financial policies. Comparative information may include: Comparative revenues and expenses by major type to include: o Total revenues and expenses per capita. o Taxes per capita by tax source. IX. ENTERPRISE FUNDS The Water, Sewer and Stormwater utilities will be managed as self-supporting business enterprises. Each utility will be managed in a professional manner in accordance with applicable laws and standards. The long range financial plan model for each utility will analyze rate revenues, rate structure, operating costs, replacement capital costs, debt service and other utility considerations (special rate programs, paybacks, etc). The City may utilize specialized rate consultants to evaluate the rate and cost structure of the utilities. X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES General Policy Considerations - The major resources for funding capital improvement and capital maintenance programs are revenues, grants and debt. Financing planned capital replacement costs are an ongoing challenge. Preparing for the challenges of infrastructure replacement or enhancements demands a long term view of replacement needs. In order to plan for these needs the City will develop a six-year Capital Improvement Plan (CIP) for adoption by Council as required by the Washington's Growth Management Act. The CIP will be consistent with the Capital Facilities Element ofthe City's Comprehensive Plan. XI. DEBT MANAGEMENT POLICY Long Term Debt - The City will manage its long term debt in a manner designed to utilize its credit to optimize City services while balancing overall debt levels and annual debt service obligations. Long-term debt includes Bonds, Federal or State loans (e.g. City of Port Townsend 2018 Budget Page 126 of 172 Resolution 16-042 Exhibit A Page 14 of 16 PWTF, FHA), or private placement financing. The City shall only use long-term debt for capital projects that cannot be financed out of current revenues. Annual debt payments should not exceed 15% of the total of annual General Government operating revenues plus budgeted transfers from capital funding sources. General Government Funds include the General Fund, Contingency Fund and Special Revenue Funds. Debt financing will generally be limited to one-time capital improvement projects and only under the following circumstances: When the project's useful life will exceed the term of the financing; When project revenue or specific resources as identified will be sufficient to service the debt; When projects cannot be cash funded. Debt financing will not be considered appropriate for: Current operating and maintenance expenses (except for issuing short-term instruments such as revenue anticipation notes or tax anticipation notes); and any recurring purpose (except as indicated above). Tax anticipation debt will be retired annually, and bond anticipation notes will be retired within six months of the completion of the project. Short-term debt outstanding at the end of the year will not exceed 5% of net operating revenue (including tax anticipation notes but excluding bond anticipation notes.) The City's Limited (non-voted) General Obligation (LTGO) Debt Capacity per State Law is 1.5% of total assessed value. The City should seek to retain 5-10% of its LTGO Debt Capacity for unforeseeable catastrophic emergencies. Options for Interim or`Bridge" financing may include: Bond Anticipation Notes (BANS) Tax Anticipation Notes (TANS) Lines of Credit with major financial institutions Interfund Loans Short Term Debt—Transfers and Interfund Loans—General Fund transfers to other funds are intended as payments for the support of specific programs or services. Amounts not needed to support such specific program or service expenses will remain in the General Fund's fund balance. For example, the General Fund may make transfers to the Debt Fund to fund annual debt service payments or to the Community Services Fund to support parks or service programs. Interfund loans are temporary in nature. The requirements for Interfund loans are as follows: The Council must approve all Interfund loans by resolution. The resolution will include a planned schedule of repayment of the loan principal as well as setting a reasonable rate of interest to be paid to the lending fund. City of Port Townsend 2018 Budget Page 127 of 172 Resolution 16-042 Exhibit A Page 15 of 16 The borrowing fund must reasonably be able to anticipate sufficient revenue to repay the principal and interest payments as required by the authorizing resolution, The rate of interest should not be lower than the "opportunity cost" if the funds were otherwise invested, such as the LGIP (local Government Investment Pool) rate or a bank CD rate for a similar term; not higher than the external rate available to the municipality. Interest is not required in the following circumstances: o If the borrowing fund has no independent source of revenue other than the lending fund; o The lending fund is the General Fund, which, being unrestricted, can provide interest free loans to other funds. The term of the interfund loan will not exceed three years. Any interfund loans that are not repaid within three years will be scrutinized for a"permanent diversion" of moneys. (Note: These restrictions and limitations do not apply to those funds which are legally permitted to support one another through appropriations, transfers, advances, etc.) For short-term cash deficits in non-General Fund operating funds during the course of the year, City interfund loans are preferable to outside short-term or private sector lines of credit. XII. PURCHASING POLICY Purchases of goods, services and capital items will be made consistent with the annual budget appropriations, state and federal law, the City's Purchasing Ordinance and the State Auditor's requirements. The City's Purchasing Ordinance will outline the City Manager's spending and contracting authority. Any purchases or contracts above those authority limits must be authorized in advance by City Council (some exceptions for public emergencies will apply). The City Manager may delegate spending authority within his/her limits)to Department Heads to facilitate operating efficiency. The City Manager and Department Heads purchase goods and services at a reasonable cost, using an open, fairly documented and competitive process whenever reasonable and possible. The Finance & Administrative Services Director is charged with developing administrative/operating procedures to implement sound purchasing policies. These procedures will be based on guidelines provided in State Law and by the State Auditor's Office. All purchase made by the City will ultimately be approved by the Council through the voucher approval process. XIII. GRANTS MANAGEMENT POLICY Leveraging City and community resource with external financial assistance can enhance the quality and level of public services, facilities and infrastructure. City Policy is to seek and accept grants and other financial assistance consistent with the City's strategic plan. City of Port Townsend 2018 Budget Page 128 of 172 Resolution 16-042 Exhibit A Page 16 of 16 External assistance also carries with it the goals and restrictions of the grantor. Grant relationships are partnerships where the goals of both the City and grantor must be in alignment. The benefits, costs and long-term implications of the partnership must be considered prior to formal application. The City's Grants Management Policy involves the following steps: Search—City departments staff and officials are encouraged to actively search out and identify potential grants which may further the City's vision and goals, within the City's financial limitations. Pre-Application—Department Directors and staff shall pursue grants within their purchasing authority identified in City Purchasing Policies. The City Manager shall be advised of all grant considerations over a$ 10,000 total. Formal Application—Formal applications directly by the City, or indirectly by other agencies involving the City, must fall within Departmental Purchasing levels. All grants will seek reimbursement of direct cost departmental and City wide indirect or administrative costs to the maximum extent allowable by the grantor. Grants by other agencies involving the City or by the City involving other grantees must have City Manager, or Council approval beyond the $60,000 Purchasing levels. Award and Contract—Upon formal Notice of Grant Award (NOGA) or informal notification, a written contract must be approved prior to any City commitment, formal or otherwise. All grant contracts must be within the City's Purchasing levels. Any needed budget amendments for grant match not otherwise within general budget authority shall be adopted prior to formal grant acceptance and contract signing. Accountinjj and Reporting—City departments shall coordinate with Finance to assure that grants comply with Federal, State and local requirements for timely reimbursements, monitoring of vendors and sub recipients, as well as City Purchasing Policies. Any notification of audit of grant programs or funds should be sent to the Director of Finance and Administrative Services even if the audit is coordinated in another department. Close Out—Multi-year grants shall have periodic accounting reviews not less than at the close of each fiscal year. Upon conclusion of each grant, the Department grant manager shall prepare a grant close-out report in coordination with the City's Finance Department. A complete grants management file record shall be maintained per City policy, either in the Department, Finance or Clerk's Office. City of Port Townsend 2018 Budget Page 129 of 172 City of Port Townsend 2018 Budget Page 130 of 172 CITY OF PORT TOWNSEND, WASHINGTON, GENERAL GOVERNMENT DEBT, UTILITY & INTERGOVERNMENTAL DEBT AND INTERFUND LOANS The City issues long-term debt instruments to finance large capital projects. These debt instruments may include tax-exempt bonds, intergovernmental loan programs and inter- fund loans. State law limits the amount of debt the City may issue. The following is a summary of the types of debt and their associated debt limits: General Government Debt General obligation bonds may be issued through voted or non-voted bonds. Debt capacity is limited to certain percentages of the City’s total assessed property value (AV). Voted bonds require a 60% majority vote to pass. The statutory debt limits are as follows: • General obligation bonds are limited to 2.5% of the City’s current AV. Of this 2.5%, non-voted (councilmanic) debt is limited to 1.5% of the City’s current AV. • General obligation voted bonds can be issued for Parks and Open Space up to 2.5% of the City’s current AV. • General obligation voted bonds can be issued for Utility purposes up to 2.5% of the City’s current AV. During 2017, the City refinanced its 2008 limited tax general obligation bonds through an advance refunding. As a part of this refinance, the City borrowed $3,200,000 of additional new debt to finance library, street, sidewalk and other general government projects. The resulting bonds were sold into issues – Series A (bank qualified issue) in the amount of $9,155,000; and Series B (taxable issue) in the amount of $1,060,000. The total interest cost of the bonds was 3.29%. The refinancing of the 2008 LTGO Bonds produced net present value savings of $980,000 or 13.1% as a percentage of the refunded bonds’ principal amount. The City’s total non-voted debt will have an outstanding balance of $16,735,000 as of January 1, 2018. Currently the City has three outstanding councilmanic bond issues: • Series 2010 limited tax general obligation bonds issued to for sidewalks, utility and street improvements, and Carnegie library retrofit. Outstanding balance as of January 1, 2018 - $3,355,000. • Series 2012 limited tax general obligation refunding bond issue, refunded 1999 bonds and a portion of the 2002, 2003 and 2005 general obligation bonds. The refunding saved the City $645,221 in interest cost over a 13-year period. Outstanding balance as of January 1, 2018 - $3,165,000. • Series 2017 (Series A & B) limited tax general obligation bonds issued to refund the Series 2008 bonds and to finance road and sidewalk improvements, tourism, infrastructure and waterfront access improvements. Outstanding balance as of January 1, 2018 - $10,215,000. City of Port Townsend 2018 Budget Page 131 of 172 Principal payments on the outstanding non-voted debt for 2018 are $685,000, due on December 1, 2018. In February 2015, 71.37% of the voters of the City of Port Townsend approved a ballot measure to authorize the City to issue up to $3,600,000 in bonds for the Mountain View Commons energy retrofit and other campus improvements. The bonds were issued in June 2015 in the amount of $3,385,000, with a net interest cost of 3.06%. The annual debt service will be just under $300,000 in 2018. The City will levy property taxes in the amount of $150,000. The remainder of the debt service will be funded by Special Purpose Sales Tax receipts. General Obligation Line of Credit The City Council authorized the City Manager to execute an agreement with Cashmere Valley Bank to provide a line of credit for $1,500,000 in November 2014. In November 2017, the City Council voted to approve Ordinance 3186, amending Ordinance 3123, as amended by Ordinance 3157, to extend the maturity date of the note an additional eighteen months to May 31, 2019. There are no current amounts outstanding on this line of credit. Only outstanding amounts on the line of credit impact the calculation of the City’s debt capacity. The line of credit is available to be used for interim cash flow needs for General Government and Street Capital Projects during 2017, if needed. The line of credit may be used to fund cash flow needs while permanent financing is obtained or while the City awaits reimbursement on grant funded projects. Debt Financial Policies The City Council adopted financial policies allow for annual debt payments on General Government obligations for capital improvements that cannot be funded out of current revenues. These annual debt payments should not exceed 15% of the total of annual General Government operating revenues plus budgeted transfers from capital funding sources. General Government Funds include the General Fund, Contingency Fund and Special Revenue Funds. The following chart and table reflects the current general obligation non-voted and voted bond debt capacity based on the Jefferson County Assessor’s 2017 preliminary assessed values for 2018 taxes; preliminary assessed values increased by approximately 5.7%, consequently, increasing the City’s available debt capacity: 2015 Actual 2016 Actual 2017 Estimated 2018 Budget Annual Debt Service as % of Revenue Less than 15%8.5% 10.1% 10.5% 10.7% GO Debt Service as a % of General Government Revenue City of Port Townsend 2018 Budget Page 132 of 172 General -Non-Voted Currently Obligated, $16,050,000 General -Non-Voted Remaining Allowed, $6,813,967 General -Voted Currently Obligated, $3,020,000 General -Voted Remaining Allowed, $12,222,644 Parks and Open Space -Requires Voter Approval, $38,106,611 Utility -Requires Voter Approval, $38,106,611 2018 Debt Capacity -AV $1,524,264,440 City of Port Townsend 2018 Budget Page 133 of 172 Utility & Intergovernmental Debt The City has funded utility/public works projects with intergovernmental loans from the Public Works Board (Public Works Trust Fund loans used to fund public work projects) and the State Revolving Fund (Department of Ecology low interest loans for water quality projects). These loans are repaid from utility revenues rather than property tax revenues. In January 2017, the City’s new drinking water treatment facility and reservoir, estimated cost of approximately $24 million, were placed in service. Public Works Trust Fund Loans and Drinking Water State Revolving fund a significant portion of this project. The City’s contribution for this project was approximately $2,500,000 and was funded through transfers from the System Development Fund and reserves in the Water/Sewer Operating and Capital funds. Repayment of the loans will come from utility revenues, which include a capital surcharge that is currently being assessed. A utility debt reserve fund has been established to reserve collected surcharge amounts for these future debt payments. At City of Port Townsend 2018 Budget Page 134 of 172 the end of 2018, the debt reserve fund is estimated to have a fund balance of approximately $1,600,000. Utility Line of Credit The City Council authorized the City Manager to execute an agreement with Kitsap Bank to provide a line of credit for $3,000,000 in February 2016. This line of credit is used to fund vendor payments in advance of receiving loan/grant funding from state or federal agencies. There is currently $1,700,000 outstanding on this line of credit. Future Utility Capital Improvement Funding The City has identified utility capital improvement projects that require funding in 2018 and beyond. The table below provides a list of these projects. In 2017, the City budgeted for a utility rate study update to determine the best option for funding these projects. The rate study is nearing completion and a combination of intergovernmental loans, revenue bonds or use of the utility’s own cash reserves to fund future projects is being considered. The City will also be developing a Regional Stormwater facility in the Upper SIMS Way & Mill Road area. Estimated cost for this facility will be approximately $1,200,000. This project is currently in the design stage and will be funded via a CERB loan. Interim funding for the City’s match for this project will be through an inter-fund loan. Permanent funding will be identified in the Stormwater functional plan. The City will be assessing repayment options for the CERB loan during 2018. Inter-fund Loans The City had one outstanding inter-fund loan as of January 1, 2017 for $500,000. This inter-fund loan was approved as a part of the 2016 budget plan and was due no later than January 1, 2019. This inter-fund loan was paid off through the 2017 advance refunding/new money debt issuance discussed at the beginning of this section. The City currently has no outstanding inter-fund loans. The 2017 supplemental budget includes an inter-fund loan for $250,000 from the Transmission Line Fund to the General Fund. The details of this loan are as follows: In 2017, the City entered into a loan agreement with Homeward Bound to provide temporary funding for an affordable housing project. The loan is scheduled to be Utility Capital Improvement Projects Funding Required Water Street Overlay - Water / Sewer / Storm Upgrades $1,040,000 Big Quil Diversion Dam $1,300,000 LT2 Water Filtration Treatment Facility - Closeout $1,868,000 Sewer Outfall Replacement $5,000,000 Southwest Sewer Pump Station $4,330,000 Gaines Street Sewer Pump Station $465,000 Sewer Infiltration/Inflow Removal $260,000 Total Utility Capital Improvement Projects $14,263,000 City of Port Townsend 2018 Budget Page 135 of 172 repaid to the City’s general fund by December 26, 2017. Homeward Bound is completing its financing plan but will likely request that the City extend the loan term. An inter-fund loan to repay the General Fund for the initial $250,000 loan will be considered by the City Council in late November 2017. City of Port Townsend 2018 Budget Page 136 of 172 City of Port Townsend 2018 Budget Page 137 of 172 City of Port Townsend 2018 Budget Page 138 of 172 City of Port Townsend 2018 Budget Page 139 of 172 City of Port Townsend 2018 Budget Page 140 of 172 CITY OF PORT TOWNSEND, WASHINGTON STAFFING AND COMPENSATION The City of Port Townsend employs over 100 individuals. City employees are made up of four groups: • General Government Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters • Police Department Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters • Non-represented management, library and “confidential” employees who do not belong to any bargaining group • Part-time and temporary/seasonal employees Compensation and benefits for the two Teamsters bargaining units are negotiated and certain wage changes, pay scales and benefit packages are administered based on the contractual agreements. 2018 Budget Assumptions for General Government Agreement The General Government Agreement covers Public Works, Development Services, Finance and Police Administration employees. The General Government Agreement with the Teamsters defines the pay scales, seniority rates and annual inflationary adjustments to salaries for this group of employees. The proposed 2018 budget was prepared by reviewing each employee’s position and seniority as compared to the wage charts. The cost of living adjustment is tied to 100% of the change in the Consumer Price Index for Seattle-Tacoma-Bremerton (CPI-U) from June to June of the previous year. For 2018 salaries, the inflationary increase is 3.0%. Full time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees in this group contribute 10% of the total cost of the medical benefit costs for themselves and any covered dependents. Teamster benefit rates are not expected to increase in 2018. The General Government Agreement expires December 31, 2018. 2018 Budget Assumptions for Police Agreement The Police Agreement with the Teamsters defines the pay scales, compensated hours, seniority rates and inflationary adjustments to salaries for police officers and sergeants. The agreement with the Police bargaining unit will expire on December 31, 2017. Negotiations are currently under way to renew this contract but will likely not be finalized prior to adoption of the 2018 budget. For 2018 wage and benefit assumptions, the city forecasted increases based on the current contract. Any changes resulting from the finalized agreement will be incorporated into a supplemental budget request in 2018, if necessary. City of Port Townsend 2018 Budget Page 141 of 172 2018 Budget assumptions are therefore forecasted with an inflationary increase of 3.0% (this contract is also tied to 100% of the change in the Consumer Price Index for Seattle-Tacoma-Bremerton (CPI-U) from June to June of the previous year). Full-time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 10% of the medical benefit costs for themselves and any covered dependents. Teamster benefit rates are not expected to increase in 2018. 2018 Budget Assumptions for Non-represented employees The non-represented employee group is made up of management and professional level staff, library staff, and confidential/administrative staff. This group has no formal contractual agreement and benefit and wage increases have historically been dictated by performance and availability of budget dollars. Full time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 15% of the total cost of these benefits for themselves and any covered dependents. Medical benefit rates are forecasted to increase 7.2% which is partially offset by a 2.0% discount for well city designation. Dental premiums are forecasted to increase on average of 1.5%. There are no increases forecasted for Vision benefit rates. A classification scale and compensation policy for non-represented employees was approved by the City Council in 2015 to formalize wages and establish a predictable compensation system. Wage scales for this group of employees are updated each year with expected inflationary increases and new positions. The 2018 budget includes a cost of living adjustment for non-represented employees of 3.0%. City Council Strategic Plan – Recruiting Staff, Succession Planning and Best Practices One of the objectives in the Council’s three-year strategic plan for 2016 - 2018 is to foster a healthy City organization through investing in leadership development and training and adopting and implementing best employment practices. In 2017, the Human Resource Manager performed a city-wide training needs assessment and implemented city-wide training opportunities, all of which were well attended. Training classes included Anti-Harassment, Budgeting Basics, Time Management, Communication Skills, First Aid/CPR, and Microsoft software training. Human Resources continues to update personnel policies to comply with current laws, rules, regulations and practices. A best practice the city invested time and resources to was the implementation of an employee self-serve software. Employees are now able to access accrual balances and paperless paystubs on a secure web hosted site, eliminating the need for paper paystubs. City of Port Townsend 2018 Budget Page 142 of 172 A study and analysis was completed in 2017 to recommend efficiencies regarding the administration of B&O taxes & licensing in the Finance Department. City Council passed Ordinance 3187 in November that will benefit small businesses in our city and reduce administrative time in processing B&O returns. Once this administrative process transition has occurred, these staffing resources can now be re-directed toward more value-added projects and tasks. The Police Chief recruited an Executive Assistant to handle confidential matters on his behalf. This position is responsible for administrative duties including assisting the chief with personnel matters, scheduling, budget management, invoice coding, expenditure tracking, and travel arrangements and reimbursements. In October 2017, a team led by the Executive Assistant, sponsored by the City Manager, participated in a value stream process improvement event to recommend efficiencies in administering special events and facility rentals. This team was successful in mapping out our current processes, defining non-value-added tasks for elimination, and developing a recommendation to improve efficiencies, eliminate waste, and increase customer satisfaction. One of the recommendations of this team is the recruitment of a position to administer special events, facility rentals and parking enforcement as a community service officer. The 2018 Proposed Budget includes this new position in the General Fund. The Engineering and Development Services departments participated in a LEAN event in 2016 under the guidance of an assigned Lean Six Sigma Coach with the State Auditor’s Office. That team continues to meet and follow up on recommended best practices and initiate new process improvements. Succession planning continues to be a priority to allow a smooth transition when key employees retire or leave the organization. In December 2017, the City’s long tenured Public Works Director is retiring. His replacement was recruited the first of September, allowing time to transition responsibilities and “download” historical information and working knowledge of the utility systems. Other new recruits added in 2017 include the Police Executive position noted above, an unbudgeted Civil Engineer, a budged permit technician, two budgeted full-time swim instructors replacing part time staff adding a total of .63 FTEs, and two budgeted part- time swim team coaches adding a total of .60 FTEs. The Civil Engineer was added in July to assist the public works staff and development services staff with the Water Street Overlay, Howard Street Sub Area Planning and other projects. Engineer salaries & benefits are funded by capital project revenue. Swim instructors lead classes that drive additional pool revenue. The revenue associated with these instructors covers the direct cost of the instructors’ salaries and benefits. In 2017, the City Council approved the transfer of the management of the Port Townsend Swim Team from the parent-led non-profit to a City recreation program. The swim team coach positions are offset by revenues charged to swim team participants. City of Port Townsend 2018 Budget Page 143 of 172 In March 2017, the city recruited an additional permit technician to work at the Development Services counter assisting with increased demand for public works infrastructure development permit processing. In addition to the positions noted above, two unbudgeted temporary employees were recruited to assist the city with economic development planning. These temporary positions are budgeted to end at the close of 2017. In 2018 and beyond the focus on developing career pathing and city-wide training opportunities for growth for existing employees and to enhance the city’s ability to retain valued employees will continue. The Council financial policies target 1% of salaries for spending on department level training and 1% of salaries for City wide training expenditures. The 2018 budget includes these resources. Department managers work with the Human Resources team to implement training that both ensures regulatory compliance in required certification programs as well as employee education and professional development programs. The 2018 budget includes requests for seasonal help for parks & recreation, Streets/Storm-water/Waste-water, and Water Distribution/Water Treatment Facility departments. In addition, a request for a full-time maintenance worker at the Water Treatment Facility is requested to staff the facility 24/7 per state requirements. Finally, the 2018 Budget includes a proposed full-time Community Services Officer with a delayed start until April 2018. The Community Services Officer will be funded by the General Fund and is planned to support parking enforcement, special event management and facility rentals. City Finance and Administration carefully monitor sustainable funding before recommending new staff. Department Heads requested additional staff that are deferred due to funding limitations. A chart below shows the trend by department of staffing changes in the last five years: City of Port Townsend 2018 Budget Page 144 of 172 With the seasonal help and the addition of a new operator at the Water Treatment Plant, and Community Services Officer, a total of 109.3 positions are requested in 2018, not including volunteer hours, overtime, or accrued leave payouts. Volunteer hours amount to approximately 3.36 FTEs and assist with police operations, library operations, and parks maintenance. City wide overtime hours are also budgeted at 3,931 hours with most of those hours dedicated to police operations. Below are two tables that outline salary schedules and positions budgeted in 2018 for Elected Officials, Non Represented Employees and Represented Employees positions: CITY OF PORT TOWNSEND - AUTHORIZED POSITIONS Department/Division 2013 2014 2015 2016 2017 2018 2018 vs 2017 2018 vs 2016 General Government City Manager 2.0 2.0 2.0 2.0 2.0 2.0 0.0 0.0 City Attorney 3.0 2.7 3.5 3.6 3.6 3.6 0.0 0.0 Development Service & Planning 6.3 6.2 6.8 7.3 8.3 8.3 0.0 1.0 Finance & Utility Billing (UB)8.5 6.1 6.1 6.1 6.4 6.0 -0.4 -0.1 Police Admin & Operations 16.9 17.0 17.4 18.0 19.0 19.8 0.8 1.8 City Clerk/Human Resources 1.9 2.9 4.0 3.8 5.0 5.0 0.0 1.2 PEG TV Studio 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 City Events, Facilities & Restrooms 2.3 2.7 2.9 3.5 3.5 3.5 0.0 0.0 Street 2.0 1.8 1.8 2.1 2.1 2.2 0.1 0.1 Parks Maintenance & Recreation 2.3 2.8 2.4 3.5 4.2 4.2 0.0 0.7 Pool 4.1 5.5 4.9 6.9 7.7 7.9 0.2 1.0 Library 11.1 11.0 10.2 9.6 9.6 9.6 0.0 0.0 Equipment Rental 2.8 3.8 3.8 3.9 4.3 4.3 0.0 0.4 Total General Government 63.2 64.5 65.8 70.3 75.7 76.4 0.6 6.0 Public Works & Utilities (excl UB) Public Works Administration 2.3 2.1 2.1 2.1 3.2 3.3 0.1 1.2 Public Works Engineering 4.7 6.6 6.7 8.3 7.0 7.8 0.8 -0.5Utillities0.0 0.0 Water Distribution 5.0 5.0 5.0 5.0 5.0 5.8 0.8 0.8 Water Quality & Resource 2.0 3.0 3.0 3.0 3.0 3.8 0.8 0.8 Wastewater Collection 2.4 2.5 2.5 2.5 2.5 2.7 0.2 0.2 Wastewater Treatment 3.2 3.3 3.3 3.5 3.5 3.5 0.0 0.0 Biosolids 2.2 2.3 2.3 2.5 2.5 2.5 0.0 0.0 Stormwater 3.3 3.1 3.1 3.5 3.5 3.6 0.0 0.1Total Public Works & Utilities 25.1 27.9 28.0 30.4 30.2 33.0 2.8 2.6 TOTAL CITY FTES 88.3 92.4 93.8 100.7 105.9 109.3 3.4 8.6 3.5% 8.8% City of Port Townsend 2018 Budget Page 145 of 172 Elected Officials Classification Minimum Maximum Positions Mayor 9,000.00$ 9,000.00$ 1.00 Councilmembers 6,000.00$ 6,000.00$ 6.00 Non Represented Employees Classification Minimum Maximum Positions City Manager 124,962$ 152,126$ 1.00 Public Works Director 110,802$ 135,596$ 1.00 City Attorney 108,662$ 130,394$ 1.00 Chief of Police 100,513$ 128,082$ 1.00 Finance and Administrative Services Director 97,795$ 124,962$ 1.00 Planning Director - Development Services 97,795$ 119,527$ 1.00 Deputy Police Chief 88,843$ 108,276$ 0.00 Deputy Public Works Director/City Engineer 88,843$ 108,276$ 1.00 Parks, Recreation & Community Services Director 88,843$ 108,276$ 1.00 Assistant City Engineer II 81,537$ 102,276$ 1.00 Assistant City Engineer I 78,780$ 98,817$ 0.00 Library Director 78,780$ 97,795$ 1.00 Human Resources Manager 78,237$ 97,794$ 1.00 Prosecuting Attorney/Assistant City Attorney 75,637$ 93,002$ 1.00 Public Works Operations Manager WW/Bio 74,705$ 89,645$ 1.00 Public Works Operations Manager - Water Resources 74,705$ 89,645$ 1.00 Public Works Operations Manager - Streets/Sewer/Stormwater 74,705$ 89,645$ 1.00 Building Official 74,705$ 89,645$ 1.00 Planning Manager 75,637$ 93,002$ 1.00 City Clerk 72,205$ 93,790$ 1.00 Operations Manager - Parks, Recreation & Facilities 70,630$ 97,795$ 0.00 Finance Manager 70,630$ 94,535$ 1.00 Civil/Project Engineer - temp contract 91,197$ 91,197$ 0.00 Civil Engineer III 68,985$ 95,142$ 1.00 Senior Planner 68,067$ 87,005$ 1.00 Library Manager - Public and Technical Services 59,650$ 70,220$ 1.00 Library Manager - Youth Services 59,650$ 70,220$ 1.00 Civil Engineer EIT 55,746$ 72,054$ 1.00 Deputy City Clerk 53,290$ 70,540$ 1.00 Executive Assistant to City Manager 53,290$ 70,540$ 1.00 Human Resources Specialist 53,290$ 70,540$ 1.00 Legal Assistant/Deputy Clerk 53,290$ 70,540$ 1.00 Legal Assistant 53,290$ 70,540$ 0.60 Payroll and Benefits Administrator 53,290$ 70,540$ 1.00 Executive Assistant to Chief of Police 50,330$ 66,659$ 1.00 Hourly Part-Time Positions Library Associate 18.85$ 22.22$ 2.77 Library Assistant 14.21$ 16.76$ 2.13 Library Assistant Substitute 14.21$ 14.21$ 0.54 Library Courier, Library Page 12.10$ 14.63$ 1.19 Aquatics Recreation Aide 11.50$ 11.50$ 0.00 Lifeguard, Swim Instructor 12.10$ 13.46$ 2.70 Fitness Instructor 14.37$ 16.08$ 0.61 TEMPORARY PART TIME Hourly Pool Positions Assistant Swim Team Coach 14.37$ 21.70$ 0.30 Head Swim Team Coach 15.73$ 24.11$ 0.30 Total Non-Represented Employees 41.14 CITY OF PORT TOWNSEND NON-BARGAINING EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2018 City of Port Townsend 2018 Budget Page 146 of 172 Union/Represented Employees Classification Minimum/hr Maximum/hr **Positions Accountant 31.38$ 35.62$ 0.00 Aquatics Program Coordinator 16.79$ 18.85$ 1.00 Aquatics Program Supervisor 25.81$ 29.20$ 1.00 Assistant Planner 27.18$ 30.88$ 0.00 Associate Planner 30.29$ 36.65$ 0.00 Building Inspector 28.47$ 32.34$ 1.00 Code Compliance Officer 28.47$ 32.34$ 1.00 Community Services Officer 21.22$ 24.26$ 0.75 Crew Chief 29.72$ 33.75$ 2.00 Equipment Operator 25.81$ 29.20$ 9.00 Finance Specialist 27.18$ 30.88$ 1.00 Finance Tech II 20.52$ 23.31$ 3.00 Finance Tech III 23.27$ 26.42$ 0.00 Fitness Instructor 14.37$ 16.08$ 0.00 GIS Coordinator 29.16$ 33.17$ 1.00 Head Lifeguard I 14.37$ 16.08$ 1.00 Head Lifeguard II 15.57$ 17.46$ 1.00 IT Network Administrator 36.39$ 41.31$ 1.00 IT Technical Support 29.16$ 33.17$ 1.00 Land Use Specialist 27.18$ 30.88$ 1.00 Lead Equipment Operator 27.65$ 31.39$ 5.00 Lead Operator 27.65$ 31.39$ 3.00 Lifeguard 12.10$ 13.46$ 0.00 Maintenance Worker 21.22$ 24.26$ 9.00 Mechanic 26.40$ 29.98$ 0.00 Permit Tech 20.52$ 23.31$ 2.00 Police Clerk 23.27$ 26.42$ 2.00 Police Officer 27.82$ 37.01$ 11.00 Sergeant 32.82$ 44.11$ 3.00 Reserve Officers 15.00$ 1.00 Project Accounting Specialist 27.18$ 30.88$ 1.00 Public Works Inspector 28.47$ 32.34$ 1.00 Public Works/Engineering Support Specialist III 23.27$ 26.42$ 1.00 Purchasing/Contracts Specialist 27.18$ 30.88$ 1.00 Public Works/Engineering Support Specialist II 20.52$ 23.31$ 0.40 Seasonal Workers 15.00$ 2.04 Swim Instructor 12.10$ 13.46$ 0.00 Total Union/Represented Employees 68.19 TOTAL CITY POSITIONS (Excluding Elected Officials)109.34 **max pay does not include longevity or other premiums as may be applicable CITY OF PORT TOWNSEND UNION/REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2018 City of Port Townsend 2018 Budget Page 147 of 172 City of Port Townsend 2018 Budget Page 148 of 172 City ManagerCity Manager Development ServicesDirector City Prosecutor/Assistant City Attorney City Clerk Library Director Residents of Port Townsend Lead Equipment Operator Equipment OperatorEquipment Operator(2) GIS Coordinator Project Manger AdministrativeAssistant Civil Engineer (EIT) Civil Engineer III Project AccountingSpecialist Public Works/EngineeringSupport Specialist Crew Chief Crew Chief Maintenance WorkerFacilities (2) Lead OperatorFacilities Lead OperatorParks Sergeant(3) Library ManagerYouth Services Planning Manager Building Official Maintenance WorkerParks (2) Head Lifeguard(2) Lifeguards(Part Time) Fitness/SwimInstructors(Part Time) Aquatics ProgramCoordinator Library AssistantSubstitutesLibrary Volunteers Library Associate Library Assistant Library Assistant(2) Library Page Courier Human Resources Specialist Payroll/BenefitsAdministrator Finance Specialist Finance Technician(3) Finance Manager Human Resources Manager Public WorksInspector Police Detective Executive Assistant CommunityServices Officer Executive AssistantDeputy City ClerkLegal Assistant/Deputy Clerk Senior Planner Permit Technician(2) Land Use Specialist Building Inspector Code ComplianceOfficer Purchasing/ContractsSpecialist Legal Assistant-Prosecuting Attorney Police Clerk(2) Citizen VolunteersPolice Department Reserve OfficerVolunteers Library Associate(2) IT Technicial Support Chief of Police Maintenance Worker Maintenance Worker Maintenance Worker(2) Maintenance Worker Lead Operator Lead Equipment Operator Lead Equipment Operator Equipment Operator(2)Equipment Operator(3)Equipment Operator Lead Equipment OperatorLead Equipment Operator Aquatics ProgramSupervisor Police Officers (10)Reserve Officers (3) Library ManagerPublic & Technical Services City Attorney Finance & AdministrativeServices Director IT Network Administrator PW Operations Manager Street/Stormwater/SewerPW Operations ManagerWater Resources PW Operations ManagerWastewater Treatment/BiosolidsCity Enginer/Deputy Public Works Director AssistantCity Engineer II Public WorksDirectorParks, Recreation & Community Services Director Deborah Stinson MayorMayor Catharine Robinson Deputy MayorDeputy Mayor Amy Howard Council MemberCouncil Member David Faber Council MemberCouncil Member Michelle Sandoval Council MemberCouncil Member Pamela Adams Council MemberCouncil Member Robert Gray Council MemberCouncil Member = Proposed positionCity of Port Townsend 2018 Budget Page 149 of 172 City of Port Townsend 2018 Budget Page 150 of 172 City of Port Townsend 2018 Budget Page 151 of 172 City of Port Townsend 2018 Budget Page 152 of 172 City of Port Townsend 2018 Budget Page 153 of 172 City of Port Townsend 2018 Budget Page 154 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 155 of 172 Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 156 of 172 City of Port Townsend 2018 Budget Page 157 of 172 City of Port Townsend 2018 Budget Page 158 of 172 CITY OF PORT TOWNSEND, WASHINGTON PROPERTY TAX Property valuations are established by the Jefferson County Assessor’s Office in accordance with state law. State law restricts the amount of property taxes the City can levy. Typically, the maximum the City can levy, without the vote of the people, is 101% of the highest lawful levy amount plus the impact of new construction at the previous year’s levy rate plus the impact of new construction at the previous year’s levy rate. In early November, the Jefferson County Assessor provides the City’s assessed value (AV) for use in computing the levy rates for the following tax year. The City’s 2017 AV grew by 5.7% from the 2016 AV. New construction in the City was $21,688,678 for 2017 which adds to the City’s tax base. The total proposed property tax levy for the City General 2017 property tax levy for 2018 taxes is $4,085,609, or approximately $2.69 per $1,000 AV. This levy includes the levy lid lift for the Port Townsend Library authorized by the voters in 2008 as well as the Fire/EMS lid lift approved by the voters in 2011. The Library lid lift provides funds to pay for operating expenses for the Carnegie Library and Pink House. The Fire/EMS lid lift provides funds for fire and emergency rescue services and the receipts from this levy are remitted to Jefferson County Fire District No. 1 (East Jefferson Fire Rescue). In 2010, Port Townsend voters approved an emergency medical service (EMS) levy lid lift to $0.50 per $1,000 of AV. These taxes are remitted to East Jefferson Fire Rescue as part of an Interlocal agreement. While the EMS levy is subject to a $0.50 per $1,000 AV limitation, an increase in the County Assessor’s estimated AV for the City allows an increase in the amount of this levy beyond the 1% level. A 4.9% increase is proposed for the EMS levy for 2018. The total proposed tax levy for EMS levy lid lift for 2018 is $756,00. In February 2015, the voters of the City of Port Townsend approved a ballot measure to authorize the City to issue up to $3,600,000 in bonds for the Mountain View Commons energy retrofit and other building improvements. The bond will be partially paid with an additional property tax levy for a period not to exceed 15 years. The annual debt payments are approximately $300,000 a year. The City Council intends to use special purpose sales tax revenue to fund 50% of the payment and to levy an additional amount equivalent to the remainder of the bond payment. The levy for the Mountain View Commons bond is $150,000 for 2018. This excess levy amount is approximately $0.10050 per $1,000 of assessed values. The City of Port Townsend records property tax amounts when collected (cash basis accounting recognition system). The following chart reflects the proposed property tax levies and budget allocations by fund. The total amount is slightly higher than the City of Port Townsend 2018 Budget Page 159 of 172 proposed levy amounts listed above to allow for 2017 new construction additions or refunds/changes that may be identified and valued by the County Assessor before the end of the year. Assessed Valuation (000's)1,463,343 1,468,539 1,469,136 1,219,761 1,299,381 1,340,801 1,442,618 1,524,264 Levy Rate - General 1.39077 1.40521 1.42529 1.73897 1.66940 1.63449 1.56531 1.52015 Levy Rate - Library Lid Lift 0.64563 0.65371 0.66400 0.80908 0.77421 0.76037 0.72350 0.70654 Levy Rate - Fire Lid Lift -0.43117 0.43708 0.53429 0.51206 0.50217 0.48254 0.46682 City of PT Total General Levy 2.03640 2.49009 2.52637 3.08234 2.95567 2.89703 2.77135 2.69351 Levy Rate - EMS 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.49598 Excess Levy Rate - Mountain View - - - - - 0.05093 0.10595 0.10050 Total City Tax Levy Rate 2.53640 2.99009 3.02637 3.58234 3.45567 3.44796 3.37730 3.28999 2011 2012 2013 2014 2015 2016 2017 2018 General 581,741 675,681 682,899 740,000 750,000 770,329 811,808 850,146 Contingency 21,000 21,000 39,689 4,000 4,000 - - - Community Services 400,000 400,000 399,242 408,000 412,000 412,000 412,000 412,000 General Covernment Debt Service 150,000 101,000 99,823 102,000 102,000 102,000 102,000 102,000 Firemen's Pension 34,000 34,000 34,000 35,000 35,000 39,245 35,245 34,235 Housing Trust Fund - 10,000 6,235 10,000 10,000 10,000 10,000 10,000 Library Fund 944,778 960,000 967,644 989,000 1,006,000 1,019,185 1,043,224 1,076,951 EMS Levy 740,000 740,000 673,319 610,000 655,000 675,000 742,000 765,000 Fire/EMS General Levy 848,039 1,463,319 1,474,972 1,511,598 1,542,721 1,559,047 1,583,723 1,620,276 Mountain View Levy - - - - - 67,012 150,000 150,000 Total 3,719,558 4,405,000 4,377,823 4,409,598 4,516,721 4,653,818 4,890,000 5,020,608 Indicates Voter Approved Levy Amounts Note: Budget Allocations are intentionally slightly higher than the Property Tax Levy amounts in the Ordinance. The County Assessor provides guidance on budgeting higher than the levy to account for new construction/refunds and other valuation adjustments. 2017 for 2018 taxes CITY OF PORT TOWNSEND PROPERTY TAX LEVY ASSESSED VALUE & LEVY RATES - BY TAX YEAR BUDGET ALLOCATIONS 2010 for 2011 taxes 2011 for 2012 taxes 2012 for 2013 taxes 2013 for 2014 taxes 2014 for 2015 taxes 2015 for 2016 taxes 2016 for 2017 taxes City of Port Townsend 2018 Budget Page 160 of 172 City of Port Townsend 2018 Budget Page 161 of 172 City of Port Townsend 2018 Budget Page 162 of 172 Ci t y o f P o r t T o w n s e n d Pr o p e r t y T a x E s t i m a t e f o r 2 0 1 8 B u d g e t Ge n e r a l w / L i b r a r y Li d L i f t & F i r e L i d L i f t Ge n e r a l w i t h L i b r a r y Li d L i f t O n l y Ge n e r a l w i t h o u t L i b r a r y & F i r e L i d L i f t s EM S L e v y M o u n t a i n V i e w ( M V ) TOTAL GENERAL + EMS + MV 20 1 6 f o r 2 0 1 7 A V 1 , 4 4 2 , 6 1 8 , 4 1 1 1 , 4 4 2 , 6 1 8 , 4 1 1 1 , 4 4 2 , 6 1 8 , 4 1 1 1 , 4 4 2 , 6 1 8 , 4 1 1 1 , 4 1 5 , 7 5 6 , 9 0 0 20 1 6 N e w C o n s t r u c t i o n 1 2 , 0 0 0 , 0 0 0 1 2 , 0 0 0 , 0 0 0 1 2 , 0 0 0 , 0 0 0 1 2 , 0 0 0 , 0 0 0 20 1 6 L e v y R a t e 2 . 7 5 0 5 2 . 2 7 3 9 1 . 5 5 2 3 0 . 5 0 0 0 0 . 1 0 6 0 20 1 6 A c t u a l L e v y A m o u n t 3, 9 6 7 , 9 5 1 3 , 2 8 0 , 3 8 8 2 , 2 3 9 , 3 0 6 7 2 0 , 8 0 1 1 5 0 , 0 0 0 4 , 8 3 8 , 7 5 2 In c r e a s e o f 1 % ( O r d i n a n c e a m o u n t ) 3 9 , 6 8 0 3 2 , 8 0 4 2 2 , 3 9 3 7 , 3 4 6 - 4 7 , 0 2 5 Ba n k e d C a p a c i t y - 1 3 , 7 6 6 1 3 , 7 6 6 Ne w C o n s t ( E s t ) - $ 2 1 , 6 6 8 , 6 7 8 5 9 , 6 0 0 4 9 , 2 7 3 3 3 , 6 3 5 1 0 , 8 3 4 - 7 0 , 4 3 4 Re f u n d s ( E s t ) - $ 1 8 , 5 1 3 1 8 , 3 7 8 1 5 , 1 9 2 1 0 , 3 7 1 3 , 2 6 0 1 8 , 3 7 8 St a t u t o r y A m o u n t 75 6 , 0 0 7 - To t a l C a l c u l a t e d L e v y E s t i m a t e 4, 0 8 5 , 6 0 9 3 , 3 7 7 , 6 5 7 2 , 3 0 5 , 7 0 5 75 6 , 0 0 7 150,000 4,988,35 6 Bu d g e t o n t h e h i g h s i d e 4, 1 0 5 , 6 0 9 3 , 3 9 4 , 0 5 7 2 , 3 1 7 , 1 0 5 76 5 , 0 0 0 150,000 5,020,609 20 1 7 f o r 2 0 1 8 A V 1, 5 2 4 , 2 6 4 , 4 4 0 1, 5 2 4 , 2 6 4 , 4 4 0 1, 5 2 4 , 2 6 4 , 4 4 0 1, 5 2 4 , 2 6 4 , 4 4 0 1,492,549,44 6 Le v y R a t e 2. 6 9 3 5 0 2 . 2 2 6 6 8 1 . 5 2 0 1 5 0. 5 0 1 8 8 0.10050 Ne w C o n s t ( E s t ) - $ 2 1 , 6 6 8 , 6 7 8 21 , 6 6 8 , 6 7 8 21 , 6 6 8 , 6 7 8 21 , 6 6 8 , 6 7 8 21 , 6 6 8 , 6 7 8 Pr o p e r t y T a x B u d g e t G e n e r a l L i b r a r y F I R E E M S M V T o t a l Bu d g e t o n t h e h i g h s i d e 2, 3 1 7 , 1 0 5 1, 0 7 6 , 9 5 1 71 1 , 5 5 2 76 5 , 0 0 0 150,000 3,232,10 5 20 1 7 B u d g e t L e v y R a t e 1. 5 2 0 1 5 0. 7 0 6 5 4 0. 4 6 6 8 2 0. 4 9 5 9 8 0.10050 2.11663 AL L O C A T I O N Ge n e r a l 85 0 , 1 4 6 Pa y m e n t t o E J F R : Co n t i n g e n c y - FI R E 71 1 , 5 5 2 Co m m u n i t y S e r v i c e s 41 2 , 0 0 0 EM S 76 5 , 0 0 0 Ge n e r a l C o v e r n m e n t D e b t S e r v i c e 10 2 , 0 0 0 1% i n c r e a s e p e r c o n t r a c t 90 8 , 7 2 4 Fir e m e n ' s P e n s i o n 34 , 2 3 5 EJ F R 2, 3 8 5 , 2 7 6 Ho u s i n g T r u s t F u n d 10 , 0 0 0 Li b r a r y F u n d 1, 0 7 6 , 9 5 1 EM S L e v y 76 5 , 0 0 0 20 1 7 B a s e 87 0 , 2 2 2 Fi r e / E M S G e n e r a l L e v y 1, 6 2 0 , 2 7 6 1% I n c r e a s e 8, 7 0 2 To t a l 4, 8 7 0 , 6 0 9 20 1 8 B a s e 87 8 , 9 2 4 1/ 2 N e w C o n s t r u c t i o n 29 , 8 0 0 MV L E V Y 15 0 , 0 0 0 20 1 8 C a p t o E J F R 90 8 , 7 2 4 TO T A L C I T Y L E V Y - B U D G E T 5, 0 2 0 , 6 0 9 CH E C K T O T A L - Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 163 of 172 C i t y o f P o r t T o w n s e n d 2 0 1 8 B u d g e t P a g e 1 6 4 o f 1 7 2 As s e s s e d V a l u a t i o n ( 0 0 0 ' s ) 1 , 4 6 3 , 3 4 3 1 , 4 6 8 , 5 3 9 1 , 4 6 9 , 1 3 6 1 , 2 1 9 , 7 6 1 1 , 2 9 9 , 3 8 1 1 , 3 4 0 , 8 0 1 1 , 4 4 2 , 6 1 8 1,524,264 Le v y R a t e - G e n e r a l 1. 3 9 0 7 7 1 . 4 0 5 2 1 1 . 4 2 5 2 9 1 . 7 3 8 9 7 1 . 6 6 9 4 0 1 . 6 3 4 4 9 1.56531 1.52015 Le v y R a t e - L i b r a r y L i d L i f t 0 . 6 4 5 6 3 0 . 6 5 3 7 1 0 . 6 6 4 0 0 0 . 8 0 9 0 8 0 . 7 7 4 2 1 0 . 7 6 0 3 7 0.72350 0.70654 Le v y R a t e - F i r e L i d L i f t - 0 . 4 3 1 1 7 0 . 4 3 7 0 8 0 . 5 3 4 2 9 0 . 5 1 2 0 6 0 . 5 0 2 1 7 0.48254 0.46682 Ci t y o f P T T o t a l G e n e r a l L e v y 2 . 0 3 6 4 0 2 . 4 9 0 0 9 2 . 5 2 6 3 7 3 . 0 8 2 3 4 2 . 9 5 5 6 7 2 . 8 9 7 0 3 2.77135 2.69351 Le v y R a t e - E M S 0. 5 0 0 0 0 0 . 5 0 0 0 0 0 . 5 0 0 0 0 0 . 5 0 0 0 0 0 . 5 0 0 0 0 0 . 5 0 0 0 0 0.50000 0.49598 Ex c e s s L e v y R a t e - M o u n t a i n V i e w - - - - - 0 . 0 5 0 9 3 0.10595 0.10595 To t a l C i t y T a x L e v y R a t e 2. 5 3 6 4 0 2. 9 9 0 0 9 3. 0 2 6 3 7 3. 5 8 2 3 4 3. 4 5 5 6 7 3. 4 4 7 9 6 3.37730 3.29544 20 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 Ge n e r a l 58 1 , 7 4 1 67 5 , 6 8 1 68 2 , 8 9 9 74 0 , 0 0 0 75 0 , 0 0 0 77 0 , 3 2 9 811,808 850,146 Co n t i n g e n c y 21 , 0 0 0 21 , 0 0 0 39 , 6 8 9 4, 0 0 0 4, 0 0 0 - - - Co m m u n i t y S e r v i c e s 40 0 , 0 0 0 40 0 , 0 0 0 39 9 , 2 4 2 40 8 , 0 0 0 41 2 , 0 0 0 41 2 , 0 0 0 412,000 412,000 Ge n e r a l C o v e r n m e n t D e b t S e r v i c e 1 5 0 , 0 0 0 10 1 , 0 0 0 99 , 8 2 3 10 2 , 0 0 0 10 2 , 0 0 0 10 2 , 0 0 0 102,000 102,000 Fi r e m e n ' s P e n s i o n 34 , 0 0 0 34 , 0 0 0 34 , 0 0 0 35 , 0 0 0 35 , 0 0 0 39 , 2 4 5 35,245 34,235 Ho u s i n g T r u s t F u n d - 1 0 , 0 0 0 6, 2 3 5 10 , 0 0 0 10 , 0 0 0 10 , 0 0 0 10,000 10,000 Li b r a r y F u n d 94 4 , 7 7 8 96 0 , 0 0 0 96 7 , 6 4 4 98 9 , 0 0 0 1, 0 0 6 , 0 0 0 1, 0 1 9 , 1 8 5 1,043,224 1,076,951 EM S L e v y 74 0 , 0 0 0 74 0 , 0 0 0 67 3 , 3 1 9 61 0 , 0 0 0 65 5 , 0 0 0 67 5 , 0 0 0 742,000 765,000 Fi r e / E M S G e n e r a l L e v y 84 8 , 0 3 9 1, 4 6 3 , 3 1 9 1, 4 7 4 , 9 7 2 1, 5 1 1 , 5 9 8 1, 5 4 2 , 7 2 1 1, 5 5 9 , 0 4 7 1,583,723 1,620,276 Mo u n t a i n V i e w L e v y - - - - - 6 7 , 0 1 2 150,000 150,000 To t a l 3, 7 1 9 , 5 5 8 4, 4 0 5 , 0 0 0 4, 3 7 7 , 8 2 3 4, 4 0 9 , 5 9 8 4, 5 1 6 , 7 2 1 4, 6 5 3 , 8 1 8 4,890,000 5,020,608 In d i c a t e s V o t e r A p p r o v e d L e v y A m o u n t s No t e : B u d g e t A l l o c a t i o n s a r e i n t e n t i o n a l l y s l i g h t l y h i g h e r t h a n t h e P r o p e r t y T a x L e v y a m o u n t s i n t h e O r d i n a n c e . T h e Co u n t y A s s e s s o r p r o v i d e s g u i d a n c e o n b u d g e t i n g h i g h e r t h a n t h e l e v y t o a c c o u n t f o r n e w c o n s t r u c t i o n / r e f u n d s a n d o t h e r v a l u a t i o n a d j u s t m e n t s . 2017 for 2018 taxes CI T Y O F P O R T T O W N S E N D P R O P E R T Y T A X L E V Y AS S E S S E D V A L U E & L E V Y R A T E S - B Y T A X Y E A R BU D G E T A L L O C A T I O N S 20 1 0 f o r 20 1 1 t a x e s 20 1 1 f o r 20 1 2 t a x e s 20 1 2 f o r 20 1 3 t a x e s 20 1 3 f o r 20 1 4 t a x e s 20 1 4 f o r 20 1 5 t a x e s 20 1 5 f o r 20 1 6 t a x e s 2016 for 2017 taxes Ci t y of Po r t To w n s e n d 20 1 8 Bu d g e t Page 165 of 172 C i t y o f P o r t T o w n s e n d 2 0 1 8 B u d g e t P a g e 1 6 6 o f 1 7 2 250 Madison Street Port Townsend, WA 98368 (360) 379-5047 FAX: (360) 385-4290 2017 City Council Pos. Name Phone Email Exp. 1 Michelle Sandoval 981-6562 msandoval@cityofpt.us 12/31/17 2 Catharine Robinson 379-0630 crobinson@cityofpt.us 12/31/17 3 Deborah Stinson 379-0847 dstinson@cityofpt.us 12/31/19 4 Robert Gray 385-2087 rgray@cityofpt.us 12/31/19 5 Pamela Adams 774-2145 padams@cityofpt.us 12/31/17 6 Amy Howard 550-0978 ahoward@cityofpt.us 12/31/19 7 David Faber 821-9374 dfaber@cityofpt.us 12/31/19 City of Port Townsend 2018 Budget Page 167 of 172 City of Port Townsend 2018 Budget Page 168 of 172 COUNCIL COMMITTEE ASSIGNMENTS Updated November 7, 2017 COUNCIL STANDING COMMITTEES Ad Hoc Committee on Housing -------------------------------------------------------------------- MS, AH, DF Finance and Budget (4th Tues. 3pm CH #3) -------------------------------------------------- RG, CR, DS Community Development and Land Use (1st Thurs. 3pm CH #3) ------------------------ PA, MS, DF General Services and Special Projects (3rd Tues. 4pm CH #3) -------------------------- MS, AH, RG Information & Technology (1st Wed. 3pm, CH#3) --------------------------------------------- PA, DS, AH Succession Planning (As needed) ---------------------------------------------------------------- Unassigned CITY BODIES WITH COUNCIL REPRESENTATIVES Alternative Electric Management Committee -------------------------------------------------- Unassigned Lodging Tax Advisory Committee (LTAC) ----------------------------------------------------------------- MS PEG Access Coordinating Committee ---------------------------------------------------------------------- RG OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES Economic Development North Olympic Development Council (NODC) ------------------------------------------------- DS (DF alt.) Health Jefferson County Board of Health --------------------------------------------------------------------------- CR Jefferson County Developmental Disabilities Advisory Board ----------------------------------------- PA Jefferson County Substance Abuse Advisory Board ---------------------------------------------------- CR Jefferson County Mental Health and Substance Abuse Sales Tax Committee ------------------- CR Jefferson County Clean Water District Advisory Council ----------------------------------------------- DS Infrastructure Public Infrastructure Board ------------------------------------------------------------------------------------ MS Law and Justice Jefferson County/Port Townsend Regional Emergency Planning Committee -------------------- DS Transportation Jefferson Transit Authority Board ----------------------------------------------------------------------- CR, DF Peninsula Regional Transportation Planning Organization Executive Board----------- CR (DF Alt) Other Climate Action Committee ------------------------------------------------------------------------------------- DS Fort Worden Advisory Committee ---------------------------------------------------------------------------- PA Jefferson County/City of Port Townsend LEOFF I Retirement/Disability Board ------------------- DF Jefferson Higher Education Committee -------------------------------------------------------------------- MS East Jefferson Fire Rescue Joint Oversight Board ------------------------------------------- CR, AH, DS OlyCAP Board of Directors ------------------------------------------------------------------------------------ RG Joint Growth Management Steering Committee----------------------------------------------- MS, DF, DS JeffCom Administrative Board -------------------------------------------------------------------------------- DS Port Townsend Main Street HUD Loan Committee ------------------------------------------------------- PA City of Port Townsend 2018 Budget Page 169 of 172 City of Port Townsend 2018 Budget Page 170 of 172 Pos.Name & Experience Exp.Pos.Name Exp. 1 Paul Schutt, Chair 5/1/19 1 Don Schussler 5/1/20 2 Jim Todd 5/1/20 2 Cate Comerford 5/1/20 3 Ed Robeau, Chair 5/1/20 3 George Randels 5/1/20 4 Roarke Jennings 5/1/20 4 Charles Paul, Chair 5/1/18 5 Jake Marley 5/1/19 5 Richard Berg, Vice Chair 5/1/18 6 Brenda McMillan 5/1/18 6 Craig Britton 5/1/19 7 Deborah Jahnke, Vice Chair 5/1/18 7 Kathleen Croston 5/1/19 Pos.Name & Role Exp.Pos.Name Exp. 1 Michelle Sandoval (Elected Official)5/1/18 1 Stan Rubin, Chair 5/1/20 2 Sherri Hanke (At Large Position)5/1/20 2 VACANT 3 Amanda Milholland (At Large Position)5/1/19 3 Kris Morris, Vice Chair 5/1/20 4 Robert Birman (Recipient)5/1/19 4 Owen Rowe 5/1/18 5 Barb Trailer (Recipient)5/1/18 5 Dominica Lord-Wood 5/1/19 6 Janette Force (Recipient)5/1/19 6 Lisa Wentworth 5/1/19 7 Denise Winter (Recipient)5/1/19 7 Abbie Greene 5/1/18 8 Cindy Hill Finnie (Collector)5/1/19 8 Dan Groussman 5/1/19 9 VACANT (Collector)5/1/20 9 VACANT 10 Fort Worden PDA Designee (Collector)5/1/20 11 Nathan Barnett (Collector)5/1/18 12 Main Street Designee (Nonvoting)5/1/18 13 Teresa Verraes (Nonvoting)5/1/20 Pos.Name Exp. 14 William Roney (Nonvoting)5/1/20 1 Ann Raymond, Chair 5/1/19 2 Sarah Fairbank 5/1/18 3 Sarah McNulty 5/1/18 4 Kathyrn Ryan 5/1/20 Pos.Name Exp.5 Sidonie Wilson 5/1/20 1 Joseph Finn 5/1/20 6 Owen Rowe 5/1/20 2 Mike Kaill 5/1/20 7 VACANT 3 Jolly Wahlstrom, Vice Chair 5/1/18 4 Hendrik Taatgen 5/1/18 5 Scott Walker, Chair 5/1/18 6 Lys Burden 5/1/19 7 Pat Teal 5/1/19 8 Richard Dandridge 5/1/19 9 Mark Henthorn 5/1/20 NON-MOTORIZED TRANSPORTATION ADV. BOARD (9) Meets 4:30pm 1st Thursday at City Hall City of Port Townsend Citizen Advisory Boards, Commissions and Committees HISTORIC PRESERVATION COMMITTEE (5-7) Meets 3:00pm 1st Tuesday at City Hall ARTS COMMISSION (9 max.) Meets 3:00pm 1st Wednesday at City Hall LIBRARY ADVISORY BOARD (5-7) Meets 3:30pm 3rd Monday at the Pink House LODGING TAX ADVISORY COMMITTEE (11 voting) Meets 3:00pm quarterly 2nd Tuesday at City Hall PARKS, RECREATION & TREE ADVISORY BOARD (5-7) Meets 4:30pm 4th Tuesday at City Hall City of Port Townsend 2018 Budget Page 171 of 172 Pos.Name Exp. 1 Paul Rice, Chair 12/31/18 2 Monica MickHager 12/31/17 3 Rick Jahnke, Vice Chair 12/31/18 4 Kirit Bhansali 12/31/17 5 Lois Stanford 12/31/19 6 Robert Doyle 12/31/19 7 Ariel Speser 12/31/19 Pos.Name Exp. 1 Gail Ryan 12/31/19 2 Jewel Atwell 12/31/19 3 Richard Knight 12/31/23 Pos.Name Exp. 1 Jefferson County BoCC ( Kate Dean)N/A 2 City Council (Deborah Stinson)N/A 3 JeffPUD (Jeff Randall - Vice Chair )N/A Pos.Name Exp. 4 Jefferson County Public Health (Laura Tucker)N/A 1 Bill James 10/24/19 5 Jefferson Healthcare ( Matt Ready)N/A 2 Jeff Jackson 10/24/19 6 Jeff. Transit (Tammi Rubert/Leesa Monroe)N/A 3 Norm Tonina 10/24/19 7 Port of PT ( Eric Toews/Sam Gibboney)N/A 4 Bill Brown 10/24/19 8 PT Paper Corp. (Kevin Scott)N/A 5 Gee Heckscher 10/24/17 9 Cindy Jayne -Chair 12/31/20 6 Jane Kilburn 10/24/17 10 Sonja Hammar 12/31/19 7 Lela Hilton 10/24/17 11 David Wilkinson 12/31/19 8 Cindy Hill Finnie 10/24/18 12 Scott Walker 12/31/18 9 VACANT 10/24/18 13 Ashley Rosser 12/31/18 10 Herb Cook 10/24/18 14 VACANT 11 Harold Andersen 10/24/17 15 VACANT PEG ACCESS COORDINATING COMMITTEE (8) Meets 3:30pm 2nd Tuesday at the Gael Stuart Building VACANT, Video Professional Brian Moratti, Citizen Representative VACANT Producers Group Representative (Optional) Meets at Fort Worden Commons B FORT WORDEN PDA (9-11) Name Joanna Sanders, City Clerk Melody Eisler, Library Director Robert Gray, City Council VACANT, School District Superintendent Steve Haveron, School District Representative Mark Welch, School District Video Instructor (Chair) VACANT Education Group Representative (Optional) CLIMATE ACTION COMMITTEE (15) Meets quarterly on 4th Wednesday VACANT, Student Representative CIVIL SERVICE COMMISSION (3) PLANNING COMMISSION (7) Meets 6:30pm 2nd & 4th Thursday at City Hall City of Port Townsend 2018 Budget Page 172 of 172